Only 22% of PH organizations fall under “pacesetters” and are fully ready to roll out AI-powered technologies, according to the new Cisco Philippines’ 2024 AI Readiness Index.
This means that a huge percentage of organizations are not yet fully prepared for AI adoption and integration and for leveraging AI’s potential. While this number is still low, it improved slightly by 5% compared to last year’s result, which was just 17%.
The report was based on a double-blind survey of 3,660 senior business leaders across 14 markets in the Asia-Pacific, Japan, and China (APJC) region. The survey measured six pillars: strategy, infrastructure, data, governance, talent, and culture.
According to the report, 65% of these companies surveyed allocate 10-30% of their IT budget to AI projects, focused on three strategic areas: data analysis, cybersecurity, and data management. Unfortunately, despite the efforts to increase their budget allocation, many companies have yet to see their expected results.
Another common theme that impedes progress for companies in AI is the lack of skilled talent to drive their AI initiatives across various aspects of the new technology.
This low readiness level quickly shows that businesses in the Philippines face challenges in fully utilizing AI’s potential for the organization’s future growth.