A new study by Amazon Web Services (AWS) has revealed that while artificial intelligence (AI) adoption is growing among Philippine businesses, most companies are still using the technology in basic ways, with startups outpacing larger enterprises in innovation.
The report, titled “Unlocking the Philippines’ AI Potential” and conducted in partnership with Strand Partners, surveyed 2,000 individuals, including 1,000 business leaders. It found that about 21% of businesses in the country — or roughly 250,000 firms — have adopted AI.
However, 78% said their use of the technology remains limited to elementary applications focused on improving efficiency, while only 8% reported fully integrating AI into their core operations.
Startups emerged as the most aggressive adopters, with 45% already embedding AI into their business processes and 40% developing new AI-powered products. By contrast, only 7% of large enterprises have achieved the same level of advanced integration.
The study also highlighted key barriers to wider AI adoption. A shortage of skilled professionals was cited by 57% of respondents, while 48% of startups pointed to the need for greater access to venture capital to support growth and innovation. Meanwhile, 42% of businesses expressed concern that future regulatory changes could hinder AI-driven progress.
To address these challenges, the report called for targeted digital skills training tailored to specific industries and the establishment of clear, supportive regulatory frameworks.
As a case study, AWS showcased how Pilmico Foods Corporation, a subsidiary of the Aboitiz Group, is leveraging AWS Outposts to modernize its manufacturing operations.
The technology, first rolled out at Pilmico’s Capas, Tarlac facility, enables real-time quality control, ensures compliance with data residency requirements, and standardizes IT operations across its local and international sites.
The study’s findings were unveiled during AWS Cloud Day: AI Edition on Aug. 19, an event that featured keynote speeches, panel discussions, and product showcases aimed at advancing AI adoption among Philippine enterprises.
