The Philippines’ race toward artificial intelligence (AI) adoption could lose momentum as companies face a growing workplace challenge: employees are struggling with fragmented digital systems, unclear AI strategies, and limited training.

A new study by Lark Technologies revealed that while Philippine businesses are investing heavily in digital transformation, many organizations have yet to build the foundation needed for successful AI integration.

The report, “The Paradox of Progress – Why a Broken Employee Experience is Sabotaging Adoption of AI in Workplaces in Southeast Asia,” found that only 17 percent of Philippine organizations consider themselves digitally mature, even as AI adoption becomes a priority for businesses.

The research, based on a survey of 900 employers and over 5,000 employees across six Southeast Asian markets, showed that more technology has not necessarily translated into better productivity.

In the Philippines, 52 percent of employees lose at least three hours weekly due to digital collaboration inefficiencies, while 80 percent feel overwhelmed by the number of workplace tools they are required to use. Around 58 percent said they check multiple platforms every hour just to stay connected with work updates.

Lark said the findings highlight a “critical inflection point” where companies risk adding more AI solutions on top of already complicated digital environments.

“Unless organizations address that gap now, before they layer more AI on top of an already fragmented experience, they risk accelerating the wrong things,” Lark Asia Pacific General Manager Olivier Adam said.

The study also showed a disconnect between management expectations and employee realities. Although 77 percent of employers said they support workplace empowerment, only 27 percent of employees feel they have high autonomy to introduce new ideas.

The lack of confidence is also affecting AI readiness. While 83 percent of employees said they need more support in cybersecurity and AI productivity, only 24 percent feel trained to innovate confidently using new technologies.

Despite these challenges, workers remain open to AI adoption. The report found that 86 percent of employees want AI to take over routine tasks, suggesting that resistance is not the main barrier but rather uncertainty and lack of preparation.

Adam said companies that succeed in AI adoption will be those that bring employees into the transformation process.

“Organizations that will lead in this next chapter of digital transformation are not those that simply move fastest on AI, but the ones that also bring their people with them,” he said.