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Manila Bulletin devider Business devider The Economy devider Philippine CEOs push AI transformation despite global uncertainty

Philippine CEOs push AI transformation despite global uncertainty

Published Mar 9, 2026 12:00 am  |  Updated Mar 7, 2026 11:53 am

Philippine chief executives are entering 2026 with cautious confidence, betting on digital transformation and artificial intelligence (AI) to sustain growth despite an uncertain global outlook, according to the Philippine edition of the March 2026 EY CEO Outlook Survey released by SyCip Gorres Velayo & Co. (SGV), a member firm of Ernst & Young Global Ltd.

The report, titled “The Next Move: Philippine CEOs Reshaping Strategy Through AI,” found that 48 percent of Philippine chief executive officers (CEOs) show measured optimism toward their business prospects for 2026, reflecting confidence in local and sector-level conditions while remaining cautious about global economic developments.

Local business leaders cited the need for strategic investment and prudent resource management as they navigate geopolitical tensions, policy volatility, and uneven global growth.

Economic headwinds continue to shape corporate sentiment. The report cited that Philippine gross domestic product (GDP) growth slowed to a post-pandemic low of 4.4 percent in 2025, below the government’s downgraded target range, with the recovery outlook hinging partly on rebuilding investor confidence.

The Bangko Sentral ng Pilipinas (BSP) expects modest improvement, projecting 4.6-percent GDP growth in 2026 and 5.9 percent in 2027, though global uncertainty remains elevated, the report noted.

Against this backdrop, CEOs are focusing on operational efficiency and productivity improvements. About 73 percent of Philippine CEOs said they are confident in their ability to optimize operations and enhance productivity, supported by continued digitization and process improvements designed to sustain momentum in a volatile global landscape.

AI is emerging as a central pillar of corporate strategy, though adoption remains uneven. The survey found that 46 percent of CEOs said their AI initiatives are currently underperforming, highlighting challenges related to unclear use cases and the rapidly evolving technology environment.

Even so, business leaders expect AI to deliver significant long-term gains in productivity, competitiveness, and business resilience.

Broader structural issues also continue to influence AI adoption in the country. While the Philippines has made progress in digital readiness, constraints such as limited infrastructure, fragmented policymaking, and gaps in skills development remain obstacles to faster innovation. International benchmarks cited in the report show that the Philippines ranks 43rd globally in the 2025 Government AI Readiness Index compiled by Oxford Insights, reflecting improvements in policy capacity and public-sector adoption but still trailing regional leaders.

Local business adoption likewise remains relatively limited. Research cited in the report from state-run policy think tank Philippine Institute for Development Studies (PIDS) indicates that only 14.9 percent of Philippine firms currently use AI, with most adoption concentrated in large, digitally mature information technology and business process outsourcing (IT-BPO) companies.

Despite these gaps, Philippine CEOs see AI as a defining factor in the next phase of corporate transformation. Leaders increasingly view the technology not only as a tool for efficiency but also as a catalyst for long-term resilience and competitiveness in a more uncertain global environment.

The report also underscores the importance of policy support and regional collaboration as AI adoption accelerates. With the Philippines chairing the Association of Southeast Asian Nations (ASEAN) this year, the country is positioned to help shape an emerging regional framework for AI development and governance.

According to the report, strengthening digital foundations and labor-market adaptability will be critical to capturing AI-driven productivity gains while minimizing potential disruptions—a point emphasized earlier by the Washington-based multilateral lender International Monetary Fund (IMF).

For Philippine CEOs, the strategic imperative is clear: reinforce near-term resilience while accelerating investments in AI and digital capabilities, according to the report.

As uncertainty persists, the report said that the ability to scale AI adoption will likely determine which companies merely weather global volatility and which emerge stronger from it.
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