Artificial intelligence (AI) offers significant opportunities for Philippine businesses, but access to technology alone is not enough to drive widespread adoption. According to a recent study by the Philippine Institute for Development Studies, many organizations have the basic digital infrastructure needed to begin their AI journey, yet relatively few have integrated AI into their day-to-day operations.
The study found that while 90.8% of Philippine establishments own computers and 81% have internet access, only 14.9% currently use AI tools. Across industries, overall AI adoption remains at just 3%, with skills shortages, limited awareness, governance challenges, and insufficient funding identified as key barriers to broader implementation. For the country’s micro, small, and medium enterprises (MSMEs), addressing these challenges will require coordinated support from government, industry, and the private sector.
From digital access to practical adoption
As AI tools become more widely available, many organizations continue to explore how they can be integrated into everyday business operations.
At TELUS Digital Philippines, the company has focused on making AI accessible across its workforce while investing in programs that help employees understand how and when to use the technology. One example is its internal AI hackathons, where team members from different functions collaborate to develop solutions for operational challenges using AI.
Several initiatives emerging from these programs include AI-powered tools that help create personalized learning materials and assessments, as well as systems that assist leaders in developing data-informed action plans to improve employee performance, engagement, and retention.
Building trust through governance
The PIDS study also identified governance and capability gaps as important factors limiting wider AI adoption.
To help address these concerns within its own organization, TELUS Digital developed Fuel iX, an internal AI platform designed with security, governance, and responsible AI use at its core. The company says the platform enables employees to use AI capabilities within a controlled environment that aligns with its standards for data privacy and intellectual property protection.
However, the company also acknowledges that building and maintaining enterprise AI platforms requires substantial investment, making similar initiatives difficult for many Philippine businesses without dedicated funding or broader institutional support.
Anne Munoz, country vice president of TELUS Digital Philippines, said successful AI adoption depends as much on people as it does on technology.
“What we’ve learned is that even with the right technology in place, adoption doesn’t happen on its own. People need to understand why it matters, feel confident using it, and trust that it’s being used responsibly. That’s what we’ve focused on building internally. But for most businesses in the Philippines, the bigger obstacle is getting to that starting point in the first place. That’s why the infrastructure investment, funding mechanisms, and governance frameworks the country is working toward are so important.”
Applying AI to everyday work
TELUS Digital Philippines views AI as a tool that complements human capabilities rather than replacing them.
One example comes from the company’s employee engagement team, which used AI to analyze more than 15,000 comments collected from over 25,000 employees during its annual engagement survey. According to the company, the initiative reduced analysis time by 70%, allowing specialists to focus more on developing action plans and responding to employee feedback.
The company has also introduced AI-powered simulation tools that enable employees to practice customer interactions through realistic voice and chat scenarios, providing immediate coaching and feedback before engaging with customers.
Supporting broader AI literacy
Beyond its internal initiatives, TELUS Digital Philippines has also supported AI education through community partnerships.
Working through the TELUS Digital Philippines Community Board, the company partnered with the Aboitiz Foundation and the Department of Education Schools Division Office of Manila to conduct AI training workshops for educators. The program introduced teachers to practical AI tools that can be used in classroom settings, helping prepare them for technology-enabled teaching.
According to the company, expanding AI readiness will require continued collaboration among government, industry, educational institutions, and the private sector to improve digital skills, strengthen governance frameworks, and expand access to AI technologies beyond large organizations.
In Summary
While AI tools are becoming increasingly accessible, broader adoption among Philippine businesses remains constrained by infrastructure, skills, governance, and funding challenges. Drawing on recent PIDS research and its own experience, TELUS Digital Philippines argues that successful AI adoption requires not only technology investment but also sustained efforts to build digital capabilities, responsible governance, and practical workplace applications.
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