Cost reduction, competitive pressure driving AI adoption in Phl

The need to reduce costs and pressure from competition are key drivers for artificial intelligence (AI) adoption among companies in the Philippines, but limited use cases and scalability challenges are obstacles to fully leveraging the technology, according to IBM.

- By LOUELLA DESIDERIO

The Asia-Pacific AI Outlook 2025 report commissioned by IBM showed that 47 percent of organizations in the Philippines have cited the need to reduce costs and automate key processes as an important factor driving AI adoption.

Apart from lowering costs, AI adoption in the country is also being driven by competitive pressure (47 percent) and labor and skills shortages (45 percent).

While businesses see reasons to adopt AI, challenges also remain.

In particular, 43 percent have cited limited use cases that have been defined as a challenge.