Filipina tech CEO: AI ROI lost in poor strategy, not tech

Filipina tech CEO Stephanie Sy explains that the lack of return on investment (ROI) from AI adoption by many companies stems from treating it as a simple software rollout rather than a strategic integration.

A 2024 study by the Philippine Institute for Development Studies shows that while 90.8% of enterprises have computers and 81% have internet access, only 14.9% use AI.

Despite high AI adoption rates in Asia Pacific, with 61% of enterprises using AI according to IBM, many struggle to translate this into measurable business value.

In the Philippines, 80% of organizations are adopting AI, with nearly half of generative AI users classified as 'performers', though a Hitachi Vantara executive notes the country sits closer to the lower end of the AI adoption curve due to limited investment and weak scaling strategies.

Sy notes that many Philippine organizations are trapped in 'proof-of-concept hell,' with only 25% of AI pilots yielding the expected ROI.

The Hitachi executive also cited cultural and language barriers, as well as a lack of local AI infrastructure commitment, as reasons for slower adoption.

Sy emphasizes that simply deploying AI software to employees without a proper strategy will not lead to successful outcomes.