08-04-2025 
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More than half of Philippine CEOs are moving quickly to adopt artificial intelligence (AI) technologies, yet few have seen the returns they hoped for, according to a new study by the IBM Institute for Business Value (NASDAQ: IBM).
The global survey, which polled 2,000 CEOs worldwide, including 210 from across the Association of Southeast Asian Nations (ASEAN) and the Philippines, found that 55% of CEOs in the country are actively adopting AI agents and preparing to scale their use. At the same time, 63% of respondents from the Philippines said they prioritize AI use cases based on return on investment (ROI).
However, only 23% of CEOs reported that their AI initiatives have delivered the expected returns so far. This suggests a growing gap between the intensity of AI investments and the actual results being achieved on the ground.
“Business leaders in ASEAN are under pressure to demonstrate ROI from AI while needing to invest in long-term capabilities to stay competitive,” Abraham Thomas, managing partner for ASEAN at IBM Consulting, said. “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.”
Data architecture and proprietary assets seen as keys to unlocking AI value
A central theme of the IBM study is the need for strong data foundations. Some 73% of Philippine CEOs pointed to the importance of an integrated, enterprise-wide data architecture in enabling collaboration across business functions. Meanwhile, 63% believe their proprietary organizational data holds the key to unlocking the value of generative AI.
“As Philippine organizations accelerate AI adoption in order to stay ahead in a dynamic market, their success to unlock real business value from their investments will hinge on overcoming challenges in data integration and workforce readiness,” Thomas said.
However, the lack of returns does not seem to be deterring investment. The IBM report noted that CEOs worldwide expect the growth rate of AI investments to more than double in the next two years.
Balancing speed and precision in a fast-changing landscape
With innovation cycles accelerating and customer expectations evolving, 60% of Philippine CEOs said they prefer to be “fast and wrong” rather than “right and slow” when it comes to adopting new technology. This urgency may be contributing to uneven returns, as companies push AI tools forward without the systems, training, or structures required to sustain them at scale.
Only 17% of Philippine CEOs said they have been able to scale AI enterprise-wide, a potential reason why only a minority of companies are seeing the returns they envisioned.
Innovation funding still a challenge
Funding innovation remains an obstacle for many Philippine firms. The study found that 58% of surveyed CEOs admit their organization struggles to balance funding between current operations and new technology initiatives, especially in times of unexpected change.
Furthermore, 65% of Philippine CEOs say their organizations need more budget flexibility to seize digital opportunities that could drive long-term growth and innovation.Leadership and talent needs amid AI push
The IBM study highlights the growing demand for strategic leadership and specialized talent to support AI adoption.
A large majority of Philippine CEOs (78%) believe 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.” In addition, 60% said their ability to stand out in the market depends on having “the right expertise in the right positions with the right incentives.”
In response, many organizations are now expanding their hiring focus. Sixty percent of CEOs said they are hiring for AI-related roles that did not exist a year ago.
The skills gap is not limited to new hires, however. The IBM report found that nearly a third (31%) of the Philippine workforce will require retraining or reskilling in the next three years to remain competitive in the AI-powered business environment.
Forecasting and innovation among CEO priorities
In navigating the AI shift, Philippine CEOs are zeroing in on several core priorities. These include improving forecasting accuracy, ensuring productivity and profitability, and driving product and service innovation.
“As AI rewrites the rules, CEOs who can accurately forecast market shifts, customer behavior, and operational outcomes will be the ones calling the shots,” the study noted.
Still, executives face persistent challenges. Supply chain performance, talent recruitment and retention, and adapting business models to the fast-changing digital economy were cited as among the top concerns.
AI use expected to grow despite ROI gaps
Despite the mismatch between expectations and current outcomes, the momentum behind AI adoption in the Philippines is clear. With many CEOs now convinced that AI is critical to their future competitiveness, investments are likely to accelerate, even as firms grapple with foundational challenges like data integration, talent development, and budget constraints.
“Their success to unlock real business value from their investments will hinge on overcoming challenges in data integration and workforce readiness,” Thomas concluded.
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