Numerous partnerships and significant investments are fueling efforts to fast-track (artificial intelligence) AI adoption, yet many companies have yet to see a clear return on investment (ROI). While ROI is often tied to revenue, industry leaders are advocating for a broader perspective, highlighting benefits such as risk mitigation, efficiency, and enhanced customer experiences.
The recently concluded VSTECS CXO Tech Summit showcased infrastructure and solutions designed to accelerate AI integration. Business leaders emphasized that the ROI timeline for AI varies across industries and use cases. Enterprises and applications like chatbots and cybersecurity may be showing quicker ROI compared to the long-term investments made by hyperscalers.
“We see hyperscalers like Amazon, Google, and Microsoft heavily investing in Nvidia GPU servers, despite limited ROI right now,” said Jimmy Go, president and CEO of VSTECS Phils. Inc., during the media briefing at the VSTECS CXO Tech Summit. “They are pouring investments to lead the AI race, especially in regions like Singapore and Malaysia, where adoption is growing.”
A Goldman Sachs report noted that tech giants are set to spend approximately $1 trillion on capital expenditures in the coming years on Generative AI (GenAI). These include data centers, AI infrastructure, chips, and power grid upgrades, though returns have been limited so far.
HPE, a multinational IT company that provides products, solutions, and services, observed that enterprises in the Philippines are making targeted investments in AI, particularly in end-user-focused applications like copilots to boost efficiency and customer service. These organizations are also focusing on data readiness as a critical foundation for AI while prioritizing security and data privacy.
Cybersecurity
“Enterprises are leaning toward AI use cases that improve operational efficiency and customer experience,” said Enar Marquez, country manager of Services at Hewlett Packard Enterprise. “At the same time, they are investing in preparing their data for secure and effective Gen AI adoption.”
In cybersecurity, ROI often centers on risk management rather than revenue generation. AI-enhanced solutions improve an enterprise’s ability to respond to threats and minimize potential losses.
“The ROI in cybersecurity lies in the cost of not having robust defenses,” said Alan Reyes, country manager of Fortinet, a cybersecurity solutions provider. “By quantifying risks, enterprises can see how AI helps safeguard their operations and ensures long-term stability.”
AI-enabled services are set to become integral to organizations, offering ROI that, while potentially slower to materialize, can deliver both tangible and intangible benefits.