3 December 2024 — Generative AI has become a transformative force across global industries, as shown in the newly released IDC x Microsoft 2024 Business Opportunity of AI report. The report highlighted how Filipino businesses have been adopting AI at an accelerated pace to drive innovation, boost productivity, and unlock new growth. With sectors such as finance, retail, and telecommunications leading the way, Philippine companies have been tapping into AI’s potential to redefine how they operate and compete.
Empowering Businesses to Focus on What Matters
The report showed that 75% of businesses worldwide are now using generative AI, up significantly from 55% in 2023. In the Philippines, this shift is already powering greater efficiency and enabling employees to focus on strategic tasks. Peter Maquera, Chief Executive Officer for Microsoft Philippines, said, “Generative AI is changing the way Filipino businesses approach their work by automating repetitive tasks and enhancing decision-making, allowing employees to concentrate on high-impact activities rather than routine operations.”
For instance, Visa has been using Microsoft’s Copilot AI tool to streamline financial processes, enabling its workforce to focus more on strategic initiatives that add value for customers, rather than spending time on routine data entry.
Delivering Impressive ROI and Quick Wins
AI’s potential for high returns is clear, with businesses globally seeing an average of $3.70 for every dollar invested. In the Philippines, finance and media companies are achieving even greater returns—up to $10 per dollar spent. Maquera noted, “AI’s value lies not only in what it can achieve today, but in the speed with which businesses are realizing that value, as Filipino companies deploying AI tools often see measurable returns within 13 months, positioning them well for sustainable growth in a competitive market.”
In the energy sector, BP has been leveraging Copilot to optimize production processes, using AI to predict maintenance needs and increase operational efficiency. By doing so, BP ensures its teams can proactively manage resources and improve productivity.
AI Tailored for Local Needs
As AI continues to evolve, more businesses are opting for customized solutions that address specific challenges and local market needs. Globally, 24% of organizations have moved beyond pre-built AI tools. This trend is also evident in the Philippines, where companies are looking for tailored AI solutions to enhance customer experiences, streamline logistics, and optimize other core operations. “AI’s adaptability is driving demand for custom solutions in the Philippines, where companies are increasingly pursuing tailored AI tools to address their unique goals, from improving customer interactions to boosting operational efficiency,” said Maquera.
Revolutionizing Operations Across Industries
Industries such as healthcare, finance, and retail stand to gain significantly from AI. In healthcare, Pfizer has been accelerating drug discovery by using Copilot to analyze vast datasets quickly—an approach that could inspire similar applications in the Philippine healthcare sector. Meanwhile, Honda has leveraged Copilot to improve manufacturing efficiency, reducing time spent on quality checks and increasing productivity. Maquera said, “AI is making significant contributions to sectors vital to the Philippine economy, like manufacturing and finance, proving that its impact goes beyond cost savings and drives elevated industry standards.”
Boosting Productivity Amid Skill Challenges
The report shows that productivity is a key driver for AI adoption, with 43% of global businesses attributing their highest returns to productivity gains. In the Philippines, AI has been instrumental in helping companies automate repetitive tasks, optimize workflows, and increase employee efficiency—key advantages as organizations look for faster, smarter ways of working.
Consulting giant Accenture has been using Copilot to help clients make data-driven decisions quickly. By integrating Copilot into consulting services, Accenture has provided faster, more insightful analysis, giving clients a competitive edge. “With AI adoption rising, there is a growing need for local talent equipped to manage and develop AI solutions, and Microsoft remains committed to supporting initiatives that build these essential skills in the Philippines,” Maquera emphasized.
Future Outlook: Industry-Specific AI Innovations
The report projects a rise in industry-specific AI applications over the next two years, particularly in healthcare, manufacturing, and education. For example, KPMG and PwC have integrated Copilot into their audit and tax services, automating data handling and enabling auditors to focus on complex issues—a trend that could reshape professional services in the Philippines.
“AI’s reach is expanding into every corner of the economy, and in the Philippines, industries like healthcare, manufacturing, and education are exploring ways to leverage AI to address specific challenges, from improving patient outcomes and product quality to driving classroom innovation; we look forward to seeing how Filipino organizations will continue to push the boundaries of what’s possible with AI,” said Maquera. The IDC x Microsoft 2024 Business Opportunity of AI report underscores the transformative power of generative AI for companies across the globe and in the Philippines. As AI technology advances, Filipino companies are uniquely positioned to harness its potential for innovation, profitability, and sustained competitive growth in the global marketplace.
