Cisco, a networking and security company, reported that only a small number of companies in the Philippines are well-prepared to adopt artificial intelligence (AI) technologies, according to its third annual Cisco AI Readiness Index.
The Cisco study found that only 12% of local organizations, referred to as “Pacesetters,” are consistently outperforming their peers across key AI readiness and value measures.
The report, which surveyed more than 8,000 AI leaders across 30 markets and 26 industries, showed that Pacesetters maintain an edge because of their structured and disciplined approach to AI adoption. Cisco described them as organizations that balance strategic planning with the infrastructure and data systems needed to keep up with AI’s rapid development.
“These companies are already preparing their networks for growth, scale, and complexity,” Cisco said. Almost all Pacesetters globally (98%) are designing their systems for AI integration, compared to 41% of companies in the Philippines.
“This year’s Cisco AI Readiness Index makes one thing clear: readiness leads to value,” said Zaza Soriano-Nicart, managing director of Cisco Philippines. “Across the board, we are seeing that AI-ready organizations — the Pacesetters in our research — prove this.”
She added that Pacesetters are six times more likely to move AI pilots into full deployment and 30% more likely to achieve measurable outcomes.
“As organizations now move toward deploying AI agents, their success depends on their readiness, discipline, and action,” Soriano-Nicart said.
According to Cisco, Pacesetters share several common traits. They integrate AI into their core business instead of treating it as a separate initiative. Almost all (99%) have a clear AI roadmap, compared to 61% of companies in the Philippines. Ninety-one percent (91%) also have a change-management plan, while only 27% of local firms do.
Their spending priorities reflect their commitment. Seventy-nine percent (79%) of Pacesetters make AI their top investment focus, compared to just 16% in the Philippines. Almost all (96%) also have both short- and long-term funding strategies in place.
In terms of infrastructure, 71% of Pacesetters say their networks can easily scale for AI projects, while only 11% of Philippine companies report the same. More than three-quarters (77%) are expanding data center capacity within the next year, compared to 34% locally.
Pacesetters also tend to move faster from pilot testing to production. Sixty-two percent (62%) have a repeatable process for scaling AI use cases, compared to 12% in the Philippines. Three in four (77%) have already finalized those use cases.
On performance measurement, 95% of Pacesetters track the impact of their AI investments, and 71% expect new revenue streams from these initiatives. In contrast, only 41% of companies in the Philippines share that confidence.
Security is another key factor. Pacesetters show higher awareness of AI-related threats, with 87% identifying specific risks and 62% integrating AI into their security systems. About 75% are equipped to control and secure AI agents, compared to half of Philippine firms.
Cisco said that 90% of organizations in the Philippines plan to use AI agents, and about one-third expect to do so within the next year. However, many still face infrastructure gaps, with 39% saying their networks cannot handle the complexity or volume of AI data.