The Philippines is approximately two years behind the global artificial intelligence (AI) maturity curve despite efforts to boost technology adoption nationwide, according to the Boston Consulting Group (BCG).

“We use it so much personally, more, I think, than other countries so that should be translated in the workplace,” BCG Partner Lance Katigbak told reporters in an interview.

“As a Filipino, I’m hopeful that we can be leaders in AI maturity,” he added. “I don’t think we need to be followers.”

In the Philippine AI Maturity Report, 60% of surveyed Philippine companies are categorized as stagnating or emerging, while none have yet reached a ‘future-built’ stage.

This means more than half of the firms have minimal AI activity or are still in the developmental and experimentation stage for the foundational capabilities needed to implement the new technology.

The study underscored that the country’s current AI maturity is closer to the 2024 global average than it is to the 2026 global average.

“I think that Singapore and Indonesia are a little bit further ahead of us. I think they’re probably more globally competitive,” Mr. Katigbak said. “I think, if I had to guess, there’s some wide disparity; some countries are further ahead.”

“I would think that we’re probably in the middle of the pack in Southeast Asia,” he added.

Despite trailing globally, local companies are setting ambitious goals for the next three years. By 2029, 54% are targeting to become at the forefront of AI innovation, building cutting-edge AI capabilities across their operations.

Only 8% are expected to remain at the emerging level, and none is projected to remain at the stagnating level.

To reach the target maturity rate, companies must streamline improvements by 2.5x compared to the improvement globally.

“That’s basically faster than the whole world did,” the BCG official said. “I think that the companies that don’t try to increase their maturity do risk falling behind.”

35 large Philippine companies across 12 industries were surveyed in the study by BCG, in collaboration with Makati Business Club (MBC).

AI-RELATED LAYOFFS
While AI-related layoffs have been happening overseas, Mr. Katigbak noted that stronger AI maturity across local companies will not automatically translate into a reduction in their workforce.

“In the Philippines, trying to replace people with AI is very far from being a reality,” he said. “I think we’re going to have to be an economy where humans and AI work together.”

“I think it is true in the US (United States) because the labor costs there tend to be high… When you’re able to find a solution that is economically more efficient, you will make that kind of decision,” he added.

Earlier this month, technology company Canva Inc. announced restructuring for some 1,271 employees, or 22% of its global staff, as it deals with slowing growth and rising AI expenses. — ALMIRA LOUISE S. MARTINEZ