Cisco’s inaugural AI Readiness Index exposes a significant disparity in companies’ preparedness for leveraging artificial intelligence (AI) technologies, revealing what it calls a “seismic gap” in adoption and readiness. 

The survey, which covers over 8,000 global companies including those in the Philippines, sheds light on critical inadequacies across key business areas and infrastructure, posing potential risks for the near future.

Despite acknowledging AI’s transformative potential, only 17% of surveyed organizations in the Philippines are fully equipped to deploy and benefit from AI-driven technologies. The report underscores the gradual progression of AI adoption over decades, with recent advancements in Generative AI capturing widespread attention due to increased accessibility. However, this surge in interest also amplifies concerns regarding data privacy and security.

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“As companies in the Philippines rush to deploy AI solutions, they must assess where investments are needed across different pillars of readiness like infrastructure and data to deliver on their business outcomes,” Zaza Soriano-Nicart, managing director, Cisco Philippines, said in a statement. “They also have to pay attention to how AI is being used to ensure a good return on investment, with security, and responsibility in mind.”

Challenges

A significant challenge identified is the fragmented nature of data within organizations, hindering effective AI integration. About 77% of respondents cite data existing in silos across their structures as a primary obstacle. There are positive indicators: 94% of entities are actively developing or possess robust AI strategies, indicating substantial attention from C-Suite and IT leadership.

Key findings emphasize the urgent need for action, with 98% of respondents noting a heightened urgency to deploy AI within their organizations over the past six months. Crucially, IT infrastructure and cybersecurity are highlighted as top priority areas for AI deployment.

The survey outlines critical pillars influencing AI readiness:

• Urgency: 61% believe a year or less remains before their organization faces significant negative impacts without an AI strategy.
• Strategy: Encouragingly, 77% of organizations fall under Pacesetters or Chasers, showcasing a proactive approach to AI strategy development.
• Infrastructure: Despite awareness of increased AI workloads, only 35% of Filipino organizations consider their infrastructure highly scalable, emphasizing the pressing need for enhanced capabilities to accommodate AI demands.
• Data: The weakest link in readiness, with 77% reporting siloed or fragmented data, impeding the seamless integration essential for AI applications.
• Talent: While efforts to upskill employees in AI-related skills are underway, there’s a concern about a potential talent gap hindering successful implementation.
• Governance: 68% lack comprehensive AI policies, a crucial area requiring attention to address risks concerning data privacy, compliance, fairness, and transparency.
• Culture: The lowest preparedness is observed here, primarily due to inadequate change management plans. However, the motivation to prioritize AI adoption remains high.

While there’s widespread acknowledgment of AI’s significance, the survey underscores the importance for concerted efforts to bridge existing gaps in infrastructure, data integration, talent acquisition, policy frameworks, and cultural adaptation to fully harness the potential of AI technologies.