Filipino business leaders are showing strong interest in adopting artificial intelligence (AI) to improve the way teams work and how businesses operate. According to Microsoft’s 2025 Work Trend Index Report, 89% of leaders in the Philippines believe their organizations will begin using AI agents as part of their teams within the next 12 to 18 months.
This growing trust in AI is pushing companies to rethink how work gets done. Among the local leaders surveyed, 42% said expanding team capacity through digital labor is a key priority, second only to employee upskilling at 44%.
“With intelligence now scalable and on demand, Filipino leaders have a unique opportunity to close the productivity gap and reimagine workforce capacity,” said Peter Maquera, CEO of Microsoft Philippines. “AI is not replacing human potential: it’s unlocking it in entirely new ways.”
More companies prepare for AI integration
This year’s report introduced the term “Frontier Firm,” referring to organizations that are not just using AI but also redesigning their business models and workflows around it. In the Philippines, 80% of leaders plan to hire people with AI-related skills within the next year, while 33% are even considering reducing headcount as some roles become automated.
“Filipino organizations are standing at the edge of a major transformation,” Maquera said. “The emergence of the Frontier Firm marks a new chapter in how we think about work, where AI becomes a co-pilot, not just a tool. It’s no longer about keeping up, it’s about building the future of work, today.”
A large majority of local leaders (86%) said that 2025 will be a turning point for their businesses. Yet, challenges remain. While 46% of business leaders expect productivity to increase, 53% of employees say they do not have the time or energy to work at their best. This gap shows a need for better ways of working — something AI, according to the report, could help solve.
AI becoming part of everyday work
Across the country, companies are already starting to use AI to support tasks. About 44% of leaders say they are using AI to fully automate workflows within teams. At the same time, 44% of employees say they would prefer AI over a human coworker for its around-the-clock availability. Others pointed to AI’s speed (32%) and creativity (29%) as reasons they rely on it.
Still, not everyone uses AI the same way. Nearly half of employees (46%) treat AI as a thought partner, while 53% use it mainly to follow direct commands. The report shows this is a sign of changing attitudes in the workplace.
According to Maquera, AI is “reshaping what teams look like, from the frontline to the boardroom.” He added that businesses need to invest in training, tools, and trust to help teams succeed.
“Filipinos have always been known for their adaptability and ingenuity. As the world of work evolves, equipping our workforce with AI fluency and digital skills is not just a competitive advantage — it’s essential to driving inclusive growth and innovation across the country,” Maquera said.