Philippine CEOs are increasing their investments in artificial intelligence while working to overcome hurdles in data integration, return on investment (ROI), and organizational readiness, according to the latest IBM Institute for Business Value (IBV) CEO Study.
The global survey covered 2,000 CEOs, including 210 from across Asean, including the Philippines. It found that local executives expect the growth rate of AI investments to more than double in the next two years, with 55 % of Philippine respondents already adopting AI agents and preparing to scale them across their organizations.
However, only 23 % of Philippine CEOs reported that AI initiatives have delivered the expected returns so far, even though 63 % said they prioritize AI use cases based on ROI. This gap suggests a disconnect between investment focus and realized results.
“Business leaders in ASEAN are under pressure to demonstrate ROI from AI while needing to invest in long-term capabilities to stay competitive,” said Abraham Thomas, managing partner, IBM Consulting, ASEAN. “This balancing act is made even more complex by the region’s fragmented digital landscape, with varying national regulations and inconsistent standards for cross-border data flow.”
The study also highlighted the importance of data strategies to unlock AI’s potential. About 73% of Philippine CEOs cited integrated, enterprise-wide data architecture as critical for cross-functional collaboration, while 63% said proprietary data is key to deriving value from generative AI.
Despite strong intentions to accelerate technology adoption, only 17% of Philippine CEOs said they have scaled AI enterprise-wide so far. At the same time, 60% said they would rather be “fast and wrong” than “right and slow” when adopting new technologies.
Many executives also face challenges in balancing innovation with operational needs. The study found that 58% of CEOs struggle to allocate funding between existing operations and new investments when facing unexpected changes, while 65% called for more budget flexibility to seize digital growth opportunities.
Leadership structure was also identified as a critical factor. About 78% of respondents said their organization’s success depends on having a broad group of leaders with strategic understanding and decision-making authority.
“As Philippine organizations accelerate AI adoption to stay ahead in a dynamic market, their success in unlocking real business value from their investments will hinge on overcoming challenges in data integration and workforce readiness,” Thomas said.
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