FILIPINO BRANDS are expected to increase their use of generative artificial intelligence (GenAI) to boost customer visibility, according to the Boston Consulting Group (BCG).
“In the Philippines, [GenAI] progress is a bit slower, but one area we anticipate will evolve over the next year is how brands engage with GenAI,” Julian L. Cua, BCG Managing Director & Partner, Manila, said in an e-mail.
According to BCG’s latest AI Radar Survey, Filipinos used GenAI the most to research on products and brands.
“For brands, this means it’s no longer enough to rank highly on search engines. They need to show up favorably when customers ask a GenAI tool about them,” Mr. Cua said.
However, the Philippines, Vietnam, and Laos continue to lag behind their Asian neighbors in GenAI adoption, Mr. Cua said. “Southeast Asia is relatively less energized about GenAI adoption compared to other regions, with China and India leading the charge.”
“However, findings from a separate survey of 1,500 Filipinos nationwide reveal that Filipinos are actually highly optimistic about GenAI. Many believe its integration will not only boost their productivity at work but will also have broader positive impacts on the country,” he said.
“Despite the Philippines’ significant reliance on the BPO (business process outsourcing) sector, which may face disruption due to AI advancements, Filipinos remain bullish on GenAI’s potential, reflecting a more positive outlook than the regional average.”
Globally, firms’ GenAI investments are projected to increase by 60% in the next three years, according to BCG’s AI Radar Survey.
However, only 25% of chief executive officers reported seeing meaningful value from their AI initiatives so far.
“Two-thirds of companies face significant challenges in reimagining workflows, driving cultural change, recruiting talent, and upskilling their workforce,” Sylvain Duranton, global leader of BCG X, said in a briefing last month.
“Ensuring the success of AI initiatives requires disciplined execution, a relentless focus on value creation, and a workforce ready to adapt and thrive in a rapidly evolving environment.”
To unlock AI’s potential, successful business leaders adopt the 10-20-70 framework, according to Mr. Duranton, under which 70% of their efforts must be allocated to transforming people, processes, and culture, 20% to data and technology, and 10% to algorithms.
“Globally, we see that companies are starting to use AI agents more. According to our recent AI Radar survey, more than 50% of global firms are now considering autonomous agents as part of their AI transformation. This marks a shift from previous years, where the focus was primarily on scaling AI, realizing its impacts, and validating proof of concepts,” Mr. Cua added.
BCG surveyed 1,803 C-level executives from across 19 markets and 12 industries. The survey was conducted from September to December 2024. — Beatriz Marie D. Cruz
