Philippine CEOs bullish on AI, but cite talent, infrastructure gaps — Deloitte

By Beatriz Marie D. Cruz, Senior Reporter

PHILIPPINE chief executive officers (CEOs) are confident in using artificial intelligence (AI) in major company decisions, but workforce readiness and infrastructure deficiencies remain key bottlenecks, according to advisory services firm Deloitte Philippines.

“The CEOs want to adopt, but the people below or the infrastructure is not ready,” Deloitte Philippines Country Manager Ramon Chito F. Ramos, Jr. said in an interview with BusinessWorld on June 25.

“People are resisting change, they’re not upskilled to know how to use AI,” he said.

Mr. Ramos also noted that many AI users in the Philippines are still in the “pilot stage,” which yield limited benefits instead of enterprise-wide efficiency.

To move beyond the experimental use of AI, companies should focus on what outcome or business problem it’s trying to solve using their AI tools, he said.

“There should be a mindset shift in the way you do it. Otherwise, everybody’s just rushing to adopt the latest tool and they don’t know what to do, Mr. Ramos noted.

Some Filipino firms do not have the necessary infrastructure to scale their AI use, and the unstable internet connectivity in several areas remain a challenge.

“Among the companies I’m working with, some big ones are not even on newer technology. They’re maybe on AS/400, those very old mainframe computers,” he noted.

Mr. Ramos cited the Philippines’ young population as an advantage over its Southeast Asian peers but called on the government to implement a national strategy for AI adoption.

The Department of Science and Technology is spearheading the National AI Strategy for the Philippines, a framework to guide the development, deployment, and governance of an AI-powered economy by 2028. The strategy focuses on four key pillars: infrastructure, workforce, technology, and policy.

Mr. Ramos said students should be trained on AI and digital literacy early to ensure that they are equipped as the workforce grows more tech-driven.

While AI is not replacing humans, the Deloitte executive said it is redefining workforce roles.

“Whoever can work with AI has an advantage. The people whose jobs will get replaced are the ones who cannot cope and do not use AI,” he said.

As an example, Mr. Ramos pointed out that computers made the role of a traditional typist obsolete, forcing it to evolve into higher-value positions such as editing and content creation.

“No longer is it enough to just have a CPA (certified public accountant) license. Now, you need to be a CPA and AI-enabled,” he said.

The AI boom has also seen the rise of new roles like prompt engineers and AI workflow designers, he added.

However, he reminded companies to establish strict policies on the responsible use of AI to avoid data leaks when using public AI models.

“TECH-ENABLED” ADVISORY
The rise of AI and automation has also pushed Deloitte Philippines beyond its tax, accounting, and auditing functions to specialize in consulting services, Mr. Ramos said.

“We’re certainly gung-ho about growing the Philippines,” he noted. “Even our own mindset shifts within Deloitte. Now, we want to be known as a tech-enabled advisory firm.”

“We will do a lot of… technology implementations, whether it’s AI or ERP (enterprise resource planning) software. We are at the forefront of that globally, and we want to bring that expertise into the Philippines as well,” Mr. Ramos said.

He added that geopolitical tensions like the Middle East war have pushed corporate clients to tap advisory services.

“Whenever there is a crisis or volatility, that’s when advisory actually grows, because more people need advisors to answer [questions like] ‘How do I get out of this crisis? How do I make sure my company continues to grow despite what is happening locally or in the Middle East or with AI?’”

In the Philippines, Deloitte’s audit services are provided by Navarro Amper & Co., while its assurance, tax and related services are provided by Landicho Abela & Co.

Deloitte’s clients span industries like consumer products, banking, financial services, telecommunications, healthcare, and energy.