A new global study by the IBM Institute for Business Value found that surveyed CEOs are committed to advancing AI solutions across their organization even as they face challenges from accelerating technology adoption.
The annual IBM CEO study, which surveyed 2,000 CEOs globally, including 210 CEOs across ASEAN and the Philippines, revealed that executive respondents expect the growth rate of AI investments to more than double in the next two years. Meanwhile, just over half of surveyed Philippine CEOs (55%) are actively adopting AI agents and preparing to implement them at scale.
Data remains critical as AI Investment Surges
The study finds that 63% of surveyed Philippines CEOs prioritize AI use cases based on ROI. However, only 23% have reported that their AI initiatives have delivered expected returns so far, suggesting a mismatch between investment priorities and results realized.
73% of Philippine CEO respondents identify integrated enterprise-wide data architecture as critical for cross-functional collaboration, and 63% view their organization’s proprietary data as key to unlocking the value of generative AI.
“Business leaders in ASEAN are under pressure to demonstrate ROI from AI while needing to invest in long-term capabilities to stay competitive. This balancing act is made even more complex by the region’s fragmented digital landscape, with varying national regulations and inconsistent standards for cross-border data flow,” said Abraham Thomas, Managing Partner, IBM Consulting, ASEAN. “As Philippine organizations accelerate AI adoption in order to stay ahead in a dynamic market, their success to unlock real business value from their investments will hinge on overcoming challenges in data integration and workforce readiness.”
Other key findings for the Philippines include:
CEOs Face Competing Pressures of Short-Term ROI and Long-Term Innovation
- Only 23% of Philippine CEOs report that AI initiatives have delivered expected ROI over the last few years, and 17% have scaled enterprise wide.
- 60% say it’s better to be “fast and wrong” than “right and slow” when it comes to technology adoption.
CEOs Call for More Agility and Budget Flexibility
- 58% of surveyed CEOs admit their organization struggles to balance funding for existing operations and investment in innovation when unexpected change occurs.
- 65% of CEO respondents say more budget flexibility is needed to capitalise on digital opportunities that drive long-term growth and innovation.
CEOs See Strategic Leadership and Specialised Talent as Essential to Unlocking AI Value, Amid Expertise and Skills Gaps
- 78% of surveyed CEOs say their organization’s success is directly tied to maintaining a broad group of leaders with a deep understanding of strategy and the authority to make critical decisions.
- 60% of CEO respondents say that differentiation depends on having the right expertise in the right positions with the right incentives.
- Surveyed CEOs say roughly one-third (31%) of the workforce will require retraining and/or reskilling over the next three years in the Philippines.
- 60% of executive respondents say they are hiring for roles related to AI that did not exist a year ago.
To view the full study, visit: https://www.ibm.com/thought-leadership/institute-business-value/en-us/c-suite-study/ceo
