Phl needs 3 more years for full AI adoption — Expert

BORACAY, Aklan — A cybersecurity expert believes the Philippines lags behind its ASEAN counterparts in adopting artificial intelligence (AI).

“Despite what AI can do to us, I think the Philippines remains in the infancy stage. We are just scratching the surface, as we are just realizing its benefit, as most companies fear it because of the notion that AI can replace the jobs of humans, which is not true,” said Palo Alto head of Technical Solutions Jobert David, in an exclusive interview on Thursday at the sidelines of the CXO Summit 2024 organized by VST-ECS.

“We are starting already. Many companies have already recognized the potential of AI, its productivity for businesses, and its protection from cyber-attacks. In terms of statistics, the potential of AI is ramping up. But for the Philippines, it might take another three years to get fully adopted with AI,” he added.

AI Is Not a Nemesis

In his opening speech at the summit, VST ECS president and CEO Jimmy Go highlighted AI’s bright potential for the Philippines and globally.

Citing a McKinsey report, Go noted that AI could contribute an additional $13 trillion to global economic activity by 2030, a 16% increase in cumulative GDP, translating to an additional 1.2% GDP growth per year.

“By that time, 70 percent of companies globally will have adopted at least one form of AI technology, highlighting the profound impact AI will have on the global economy,” he said.

Go projected that the AI market would grow at a compound annual growth rate of 40.8% from 2021 to 2027, driven by increasing adoption in finance, healthcare, retail, and manufacturing.

He noted that countries like China, Japan, South Korea, and Singapore are leading in AI investments, with China expected to contribute over $7 trillion to the global AI economy by 2030.

"A report by IDC estimates that 60 percent of enterprises in the APAC region will adopt AI by 2025 to enhance their productivity, optimize processes, and create new revenue streams. This rapid AI adoption in APAC underscores the region’s role as a global leader in AI innovation and development,” he further explained.

He stressed that AI is not an industry nemesis but a growth partner, simulating human intelligence to perform tasks, analyze data, and make decisions.

“Businesses leverage AI to automate processes, gain insights from large data sets, enhance customer experiences, optimize operations and make more informed strategic decisions. Among the industries that benefit from this AI revolution are healthcare, retail, e-commerce, financial services, logistics, manufacturing, hospitality, customer services, energy, creative economy, and the automotive industry, to name a few,” stated Go.

Moreover, he noted that intelligent agents help businesses reduce costs from process inefficiencies, human errors, and manual tasks.

By 2030, Go said, 14% of employees worldwide may need to change careers due to advancements in AI, digitization, and robotics. The World Economic Forum estimates that by 2025, AI could replace 85 million jobs while creating 70 million new roles, including positions like AI Ethicists, Data Privacy Managers, Urban Planners, Climate Change Analysts, Cybersecurity Analysts, and Robotic Process Automation Managers.

“Let us improve our processes, strengthen our network and cyber security infrastructure, improve automation, store and protect all relevant data in our business, and invest in technology. Only then can we move forward to AI,” the VST-ECS CEO urged.