Second of two parts
IN BRIEF:
• Key government bodies and academic institutions are collaborating to promote AI research and workforce development, while the private sector is seeing growth in AI-focused startups and partnerships with global tech companies.
• Bridging the adoption gap requires organizations to empower individuals to explore AI safely, fostering a culture of collaboration and creativity, while leaders must prioritize ethical practices and human oversight in AI decision-making.
Artificial intelligence (AI) has become an essential part of modern life and work. According to the AI Sentiment Index Study by EY Sweeney, a global survey of over 15,000 participants revealed that 82% had engaged with AI in the past six months, reflecting a significant shift in human capability and moving beyond mere technological advancement.
However, a gap in AI adoption persists, highlighting the difference between individuals’ willingness to use AI and their actual engagement with it. Factors such as trust, privacy, and control, along with the availability of AI tools, contribute to this divide, presenting organizations with a substantial opportunity to bridge it. Leadership must help their organizations foster trust in AI, demonstrate its benefits, and empower individuals to engage with AI on their own terms to be better positioned to implement it effectively. By aligning AI with human needs and aspirations, organizations can enhance human potential and shape the future role of AI in business and society.
In the first part of this article, we discussed the impact of AI on everyday life and how organizations can demonstrate the vision and value of AI to get employees on board. In this second part, we discuss the local AI landscape, how organizations can support human agency through AI, and the leadership imperative in keeping humans at the center for AI.
PHILIPPINE AI LANDSCAPEAI sentiment varies globally, influenced by factors such as age, education, and geography. This variation underscores the importance of addressing concerns while fostering familiarity and confidence in AI.
In the Philippines, a vibrant landscape of initiatives is emerging in both the private and public sectors to promote the use of AI. At the center of the country’s public AI strategy is the National AI Roadmap, first launched in 2021 and updated in 2024 as the National AI Strategy Roadmap 2.0. This framework outlines the government’s vision for using AI to boost competitiveness in key sectors such as healthcare, agriculture, and education, emphasizing ethics, infrastructure, and skills development to meet the growing demand for AI and data science professionals. Supporting this vision, the Center for AI Research (CAIR) was established as a dedicated hub to promote AI research, partnerships, and innovation across the country.
Key government bodies are playing pivotal roles in executing the strategy. The Department of Trade and Industry (DTI) leads national AI planning and development, while the Department of Science and Technology (DoST), through the Philippine Council for Industry, Energy and Emerging Technology Research and Development (PCIEERD), funds R&D projects focused on AI. In 2021, the PCIEERD launched nine AI-driven initiatives across universities and sectors, ranging from autonomous robotics to big-data systems for agriculture and urban management. The DoST is also developing the National AI Strategy (NAIS Ph), which aims to build a collaborative AI ecosystem anchored on infrastructure, training, and academic-industry partnerships, aligned with the 2023–2028 Philippine Development Plan.
Academic institutions are vital to this ecosystem, with a local university taking a leading role. This university offers the country’s first PhD program in AI and hosts major research initiatives through its Center for Intelligent Systems, simultaneously promoting ethical AI via its Principles for Responsible Artificial Intelligence. It also hosts national AI conferences that bring together experts to explore AI’s potential across sectors.
On the private side, the Philippine startup scene is gaining momentum with AI-focused companies developing tools for healthcare, finance, and customer service. One public–private initiative, in partnership with a global tech company, launched a startup accelerator to help Filipino ventures scale with AI-driven solutions. Such partnerships reflect a broader trend, with local firms collaborating with global tech leaders to enhance operational capabilities through AI.
Efforts to build a skilled AI workforce are underway through both government-led and private training programs. As noted by technology consulting firm Searce, a young and skilled workforce is poised to drive AI adoption; the country produces over 700,000 STEM graduates each year and has a strong outsourcing industry, giving it a competitive edge compared to regional counterparts. The DoST promotes continuing education and micro-credentials through partnerships with platforms like Coursera and SPARTA. Meanwhile, industry groups such as the Philippine Software Industry Association (PSIA) offer AI education and advocacy to their members to further accelerate AI adoption. In addition, a property developer and university established an information technology hub to explore AI applications internally and externally, co-developing solutions that improve efficiency and foster new business models.
Together, these efforts reflect a coordinated and growing commitment to harness AI for national progress. From public infrastructure to academic research, startup support, and workforce development, the Philippines is positioning itself as a rising hub for AI innovation and implementation in Southeast Asia.
SUPPORTING HUMAN AGENCY THROUGH AIThe openness to AI surpasses current engagement levels, revealing an adoption gap. AI is primarily utilized in customer experience and personal applications, yet many individuals use AI-driven services without realizing it. Comfort with AI often relies on the desire for human oversight in decision-making.
Bridging the adoption gap requires organizations to create opportunities for individuals to explore AI safely, fostering confidence through experience. Empowerment is essential; organizations must provide spaces for individuals to experiment and learn about AI on their own terms. Leaders will need to foster a culture that prioritizes collaboration and creativity, encouraging new ways of digital working in order to promote engagement and meaningful work.
The design of AI systems will determine whether they enhance or undermine human decision-making. While individuals are open to AI’s greater roles, boundaries exist around decision-making. Many desire human oversight, particularly in high-stakes interactions.
AI can facilitate complex decisions, and its integration into daily life is becoming more accepted. Organizations must ensure AI supports human connection and fosters creativity while enhancing individual capabilities. In line with this, NAIS Ph invested P2.6 billion in AI projects to empower citizens and stimulate innovation.
THE LEADERSHIP IMPERATIVEThe future of AI will be shaped by leaders who cultivate confidence and empower individuals. Although enthusiasm for AI exists, concerns about misinformation and data privacy remain. Addressing these issues is essential for building trust.
According to the Philippine Institute for Development Studies (PIDS), successful organizations must balance innovation with responsibility by proactively addressing concerns and committing to ethical AI practices. The true potential of AI is to enhance human capabilities rather than replace them. Additionally, PIDS encourages the Philippine government to establish clear guidelines on AI ethics, data privacy, and algorithmic transparency to foster public trust and support innovation.
A transformative vision for AI’s impact on human potential is essential, but it is still humans that have to remain at the center of the journey. Those in leadership roles who build trust and encourage authentic participation will influence the trajectory of AI.
This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinions expressed above are those of the author and do not necessarily represent the views of SGV & Co.
Rossana A. Fajardo is the Country Managing Partner of SGV & Co.