Philippines companies lag global AI maturity, BCG says

Traders Union
All News
Business & Wealth
Companies
Philippines AI maturity lag

Highlights

BCG reports 60% of large Philippine companies remain in stagnating or emerging stages of AI, with none reaching the future-built stage as of 2024.
The Philippines lags global AI maturity by about two years, and companies must accelerate adoption 2.5 times faster than the global pace to hit 2029 targets.
BCG notes higher AI adoption in the Philippines is unlikely to trigger immediate workforce cuts, contrasting with recent U.S. trends such as Canva Inc.'s 1,271 layoffs.

AI readiness gap and corporate targets

As reported by BusinessWorld Online, citing Boston Consulting Group, the Philippine AI Maturity Report shows 60% of surveyed companies are still in the stagnating or emerging stages of AI adoption, and none has reached the "future-built" stage. The study, conducted with Makati Business Club, covered 35 large Philippine companies across 12 industries.

The findings indicate that more than half of the companies have only minimal AI activity or are still building the foundational capabilities needed to deploy the technology more broadly. BCG Partner Lance Katigbak says the country's current AI maturity sits about two years behind the global curve and is closer to the 2024 global average than the 2026 global average.

Despite that gap, local companies are setting aggressive goals for the next three years. By 2029, 54% aim to be at the forefront of AI innovation across operations, while only 8% are expected to remain at the emerging level and none is projected to stay at the stagnating level.

BCG says reaching that target would require companies in the Philippines to improve their AI maturity 2.5 times faster than the global pace of improvement. Katigbak says companies that do not accelerate their efforts risk falling behind competitors.

Regional position and workforce implications

Katigbak says Singapore and Indonesia appear to be ahead of the Philippines in AI maturity and global competitiveness, while the Philippines likely sits in the middle of the pack in Southeast Asia. He also says Filipinos already use AI heavily in their personal lives, and that usage should increasingly translate into the workplace.

On employment, he says stronger AI adoption in the Philippines does not automatically mean workforce cuts. In his view, replacing workers with AI remains far from reality in the local economy, where businesses are more likely to adopt a model in which humans and AI work together.

He contrasts that with the U.S., where higher labor costs can make AI-driven automation a more immediate economic choice for employers. The comments come as overseas companies continue to adjust to AI-related costs, including Canva Inc.'s restructuring announcement earlier this month affecting about 1,271 employees, or 22% of its global staff, amid slower growth and rising AI expenses.

As noted in our earlier article, AI data center financing risks are rising amid delays, cost pressures, and power constraints in the U.S.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.