The AI Readiness Gap: Why Philippine Businesses Need More Than Access to Technology 

Artificial intelligence (AI) holds significant promise for businesses across the Philippines, yet most are not yet in a position to act on it. 

A recent study by the Philippine Institute for Development Studies (PIDS) found that while 90.8% of Philippine establishments own computers and 81% have internet access, only 14.9% currently use AI tools. Across industries, overall AI adoption remains at just 3%, with skills gaps, low awareness, and the lack of governance frameworks among the key barriers preventing wider use. The study identifies four structural barriers driving this gap: weak digital infrastructure, limited awareness of emerging technologies, significant skills gaps, and scarce funding opportunities. For the micro, small, and medium enterprises that make up the majority of Philippine businesses, these are not problems that training programs alone can solve. They require coordinated investment across government, industry, and the private sector. 

Moving from access to adoption

As AI tools become more widely available, many organizations are still navigating how to introduce them into daily work. TELUS Digital Philippines is one example of what this can look like at scale, with the resources to invest in both technology and the people using it. The overall goal has been to ensure that AI is not limited to technical specialists or leadership teams.

The company provides broad access to AI capabilities while investing in programs that help team members understand how and when to use them. One example is the company’s AI hackathons, where team members from different functions collaborate to solve real business challenges. These hands-on experiences allow participants to build practical AI skills while developing solutions that can improve operations, learning, and employee experiences.

Several initiatives developed through these programs have focused on enhancing training and performance support. These include AI-powered tools that help create personalized learning materials and assessments, as well as systems that assist leaders in developing data-informed action plans to improve team performance, engagement, and retention.

Building trust in AI adoption

For many businesses, concerns around data privacy, intellectual property protection, and responsible use remain significant obstacles to AI adoption. The same PIDS study identified governance and capability gaps as major barriers to broader implementation.

To address these concerns, TELUS Digital has invested in Fuel iX, its internally developed AI platform designed with security and governance at its core. The platform enables team members to leverage AI capabilities within a controlled environment that aligns with the company’s standards for data protection and responsible use. However, developing and maintaining a platform of this kind requires substantial investment, which puts it out of reach for most Philippine businesses without dedicated funding or government support. 

Where the investment has been made and the infrastructure exists, the focus shifts to something harder to buy: building the conditions for people to actually use these tools well. 

“What we’ve learned is that even with the right technology in place, adoption doesn’t happen on its own,” said Anne Munoz, Country Vice President of TELUS Digital Philippines. “People need to understand why it matters, feel confident using it, and trust that it’s being used responsibly. That’s what we’ve focused on building internally. But for most businesses in the Philippines, the bigger obstacle is getting to that starting point in the first place.That’s why the infrastructure investment, funding mechanisms, and governance frameworks the country is working toward are so important.” 

Using AI for everyday impact

TELUS Digital Philippines also views AI as a tool that enhances human capabilities rather than replacing them. Within the company, AI is being applied to help reduce repetitive work and allow people to focus on higher-value activities.

For example, the company’s employee engagement team used AI to analyze more than 15,000 comments from over 25,000 team members during its annual employee engagement survey. The initiative reduced analysis time by 70%, allowing specialists to spend more time developing action plans and responding to employee feedback rather than manually processing data.

The company has also introduced AI-powered simulation tools that allow team members to practice customer interactions in realistic voice and chat environments. By providing immediate feedback and coaching opportunities, these simulations help accelerate learning and build confidence before employees engage in live customer conversations.

From internal practice to broader change

As a company that works with organizations navigating their own AI journeys, TELUS Digital Philippines has tried to apply the same practices internally that it advocates externally. That means pairing technology investment with governance, training, and ongoing support. It is one model for what responsible adoption can look like, developed in the context of a large, well-resourced global operation. 

Beyond its own workforce, TELUS Digital Philippines has also supported efforts to build AI literacy in the broader community. Through the TELUS Digital Philippines Community Board, the company partnered with Aboitiz Foundation and the Department of Education Schools Division Office of Manila to deliver AI training workshops for educators. The program provided teachers with hands-on experience using AI tools in classroom settings, helping equip them with practical skills for future-ready teaching.

These efforts reflect a broader belief that improving AI readiness requires participation from multiple sectors. While businesses can invest in their own capabilities, expanding awareness and digital skills across communities is equally important.

As the Philippines works toward broader AI readiness, what TELUS Digital Philippines demonstrates is what becomes possible when the conditions are right: sufficient investment, access to platforms, and the organizational capacity to train and support people through the transition. For the Philippines to achieve broader AI readiness, those conditions need to exist beyond large companies in urban centres. That will take infrastructure investment, funding mechanisms that reach small and medium enterprises, and governance frameworks that give all businesses a clear and supported path forward. Scaling those opportunities across more businesses, schools, and communities will require continued collaboration among government, industry, and the private sector.