Philippine CEOs move AI from pilots to production, IBM study finds

Title Philippine CEOs Lead the Charge Moving AI from Pilots to Production

The Philippines has made significant strides in adopting artificial intelligence (AI) technology, with 55% of CEOs actively implementing AI agents and preparing to scale them across their organizations. According to a recent IBM study, this momentum is expected to continue, with AI investments set to more than double globally in the next two years.

Aileen Judan-Jiao, President and Country General Manager of IBM Philippines, notes that last year was training and experimentation. This year, companies are testing and deploying AI for their own organizations – using their own data. We're past the conceptual stage. Executives aren't waiting for perfect readiness anymore. They'll learn while doing, because the window of opportunity is now.

The study found that 63% of Philippine CEOs prioritize AI use cases based on return on investment, but only 23% report achieving expected returns so far. This reflects a more pragmatic approach in 2025 organizations are no longer asking if AI is relevant, but instead which department should go first and how to integrate AI into operations.

Across industries, adoption is accelerating most in finance, business process outsourcing and shared services, and consumer goods. AI is also increasingly embedded in operations, particularly in observability and automation. Judan-Jiao explains that in highly virtualized environments, AI can detect and resolve system bottlenecks dynamically, much like an unseen mechanic keeping a car running smoothly.

Operations is where AI quietly compounds value, she said. It deals with massive data, detects issues across layers, and helps ensure uptime. It's not as visible as generative AI content, but it's transformative for enterprises.

Despite the progress, challenges persist in data readiness and skills gaps. Nearly three-quarters (73%) of Philippine CEOs said an integrated, enterprise-wide data architecture is critical for cross-functional collaboration. Without it, scaling AI remains difficult.

Technology isn't the issue – the data architecture is, Judan-Jiao emphasized. The real unlock is making sure your data is clean, secure, and governed. Otherwise, AI can't deliver at scale.

Skills remain another pressing challenge. About 31% of the Philippine workforce will require retraining or reskilling over the next three years. Judan-Jiao notes that while the country benefits from a large, tech-savvy youth population, scaling must be faster.

Industry 4.0 projects across Asia-Pacific illustrate how AI adoption is already reshaping operations. In partnership with SMART Modular, IBM deployed AI-based visual inspection to automate module checks, reducing labor needs and enabling scalability to new designs. The Singapore Civil Defence Force now uses a 5G-enabled readiness inspection system and remote AR assistance for firefighting equipment.

These use cases show that AI is not just about pilots anymore – it's embedded in the workflows of manufacturing, health care, and even public safety, Judan-Jiao said. Philippine industries are watching these models closely, and many are beginning to follow suit.

For smaller enterprises, interest is high but adoption remains uneven. MSMEs want AI. Their question is how to consume it without hiring large teams, Judan-Jiao said. She explains that as-a-service models and ecosystem partners are emerging to help smaller businesses pay per project and scale only when budgets allow.

On the policy front, Judan-Jiao said government-industry consultations have intensified, with discussions around risk-based regulation, consumer protection, and the potential creation of a multisectoral AI council. We support regulation that enables innovation while protecting consumers, she said. Data ownership needs to be clear, and we must already be thinking about future risks like post-quantum security.

Despite the hurdles, Judan-Jiao expresses optimism. Collaboration across government, business, and investors is stronger than last year. If we keep aligning policy, skills, data readiness, and adoption models, growth will follow, she said. I'm optimistic about 2025. Philippine businesses are moving from pilots to production, and the pace is accelerating.

The IBM CEO Study suggests the same. Sixty percent of Philippine CEOs said it is better to be fast and wrong than right and slow in adopting technology. As Judan-Jiao summarizes, The technology is ready. The question is Are your data and your people ready to unlock its value?

In conclusion, the Philippines has made significant progress in adopting AI technology, with CEOs moving from pilots to production-scale adoption. While challenges persist, collaboration across government, business, and investors is key to unlocking the full potential of AI.

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Edward Lance Arellano Lorilla

CEO / Co-Founder

Enjoy the little things in life. For one day, you may look back and realize they were the big things. Many of life's failures are people who did not realize how close they were to success when they gave up.