A study commissioned by ST Telemedia Global Data Centres (STT GDC) has found that most Philippine organizations remain in the early stages of artificial intelligence (AI) adoption, with infrastructure and skills gaps slowing progress beyond pilot deployments.
The report, titled “Mind the Gap: Bridging the AI Infrastructure Readiness Divide,” was conducted by research and consulting firm Ecosystm and assessed the AI maturity of organizations across Asia. It grouped firms into four stages: Explorer, Builder, Integrator, and Leader.
Among Philippine respondents, 79% were classified as Builders, indicating they are already deploying initial AI solutions but largely at a limited scale. Only 2% have reached the Integrator stage, while none have advanced to Leader status. Meanwhile, 19% remain in the Explorer phase, still assessing AI use cases.
The study, based on responses from 62 organizations across industries, pointed to structural barriers preventing companies from scaling AI initiatives. A majority (71%) cited inadequate compute capacity, storage, or network bandwidth as key constraints.
The same proportion also reported experiencing latency, bandwidth limitations, and network bottlenecks when running more demanding AI workloads.
Talent shortages further compound the problem. About 76% of organizations said they face significant gaps in AI expertise, while 53% acknowledged lacking the internal capability to manage complex AI infrastructure and operations.
Beyond technical challenges, the report highlighted cultural resistance to AI adoption. As much as 94% of respondents described their organizations as skeptical, cautious, or ambivalent toward AI, suggesting that adoption barriers extend beyond infrastructure to organizational mindset.
“The data shows a clear pattern. Philippine organizations are investing and experimenting with AI, but many are hitting a ceiling in terms of infrastructure and capability,” said Carlo Malana, president and CEO of STT GDC Philippines.
“Constraints related to compute, storage, and connectivity, along with a shortage of specialized operational expertise, are making it difficult to transition from pilot projects to reliable, scaled deployments. Addressing these challenges collectively is essential for organizations to fully realize the potential of AI.”
Looking ahead, the study warned of a widening readiness gap. Nearly half (46%) of respondents expect their AI workloads to grow by more than 50% within the next one to three years.
However, only 3% believe they are prepared to scale high-demand AI systems. In addition, 86% of organizations allocate 5% or less of their IT budgets to AI, raising concerns over whether current investments can support future growth.
