TLDR: A recent global study by the IBM Institute for Business Value indicates that Philippine CEOs are significantly increasing their investments in artificial intelligence, with expectations for these investments to more than double within the next two years. While over half (55%) of surveyed Philippine CEOs are actively adopting AI agents, only 23% have reported achieving the expected returns on their AI initiatives so far, highlighting a notable gap between investment priorities and realized business value.
A new global study conducted by the IBM Institute for Business Value reveals a strong commitment among Philippine chief executive officers (CEOs) to advance artificial intelligence (AI) solutions across their organizations. The annual IBM CEO study, which surveyed 2,000 CEOs globally, including 210 from the ASEAN region and the Philippines, found that executive respondents anticipate the growth rate of AI investments to more than double in the next two years.
Despite this aggressive investment outlook, a significant challenge remains in realizing tangible returns. While 55% of surveyed Philippine CEOs are actively adopting AI agents and preparing for large-scale implementation, only 23% have reported that their AI initiatives have delivered the expected returns. This suggests a ‘mismatch between investment priorities and results realized,’ even as 63% of Philippine CEOs prioritize AI use cases based on their potential return on investment (ROI).
Abraham Thomas, Managing Partner for ASEAN at IBM Consulting, highlighted the complex environment business leaders face. ‘Business leaders in ASEAN are under pressure to demonstrate ROI from AI while needing to invest in long-term capabilities to stay competitive,’ Thomas stated. He added that this balancing act is further complicated by the region’s fragmented digital landscape, characterized by varying national regulations and inconsistent standards for cross-border data flow.
The study also underscored the critical role of data strategies in unlocking AI’s full potential. Approximately 73% of Philippine CEO respondents identified an integrated, enterprise-wide data architecture as crucial for cross-functional collaboration. Furthermore, 63% viewed their organization’s proprietary data as key to deriving value from generative AI.
Workforce readiness is another significant area of focus. The study indicated that roughly one-third (31%) of the workforce in the Philippines will require retraining or reskilling over the next three years. Concurrently, 60% of executive respondents reported hiring for AI-related roles that did not exist a year ago.
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CEOs also face pressures regarding agility and budget flexibility. About 58% admitted their organizations struggle to balance funding for existing operations with investments in innovation, especially when unexpected changes occur. In response, 65% of CEO respondents called for greater budget flexibility to capitalize on digital opportunities that drive long-term growth and innovation. The importance of leadership structure was also emphasized, with 78% of surveyed CEOs stating that their organization’s success is directly tied to maintaining a broad group of leaders with a deep understanding of strategy and the authority to make critical decisions. Interestingly, 60% of Philippine CEOs expressed a preference for being ‘fast and wrong’ rather than ‘right and slow’ when it comes to adopting new technologies.
