Addressing AI readiness in PH

ARTIFICIAL Intelligence (AI) is poised to transform the economy, including in the Philippines, with both the private and public sectors accelerating efforts to harness its potential.

Google estimates that by 2030, AI adoption could generate P2.8 trillion ($50.7 billion), presenting a tremendous opportunity to improve national development, unlock the potential of the Philippine workforce, and address economic challenges in ways not previously possible.

The government has also introduced roadmaps to leverage AI’s transformative potential. In July 2024, it took a significant step toward AI integration by launching the National Artificial Intelligence Strategy Roadmap 2.0 (NAISR 2.0) and establishing the Center for AI Research (CAIR).

While these initiatives signal progress, the path to an AI-ready Philippines hinges on its ability to modernize its infrastructure, especially its networks. In the 2023 Government AI Readiness Index by Oxford Insights, the Philippines ranked 65th out of 193 countries, scoring high for its AI vision but noting gaps in data capabilities, infrastructure and technological maturity.

AI development, progress

Filipino businesses are already at the forefront of leveraging AI, recognizing its potential to streamline processes and enhance productivity. A PwC study revealed that 74 percent of CEOs in the Philippines believe AI tools can significantly increase productivity — a figure notably higher than the regional average of 65 percent.

AI is also enhancing public services in the Philippines, with the Bureau of Immigration exploring AI for streamlined immigration processing at international airports and added security.

Meanwhile, DOST is advancing real-time weather forecasting through AI.

Elsewhere, in the private sector, smart city developer, Iveda, has partnered with local government units in major cities to modernize infrastructure, including airports, roads and sidewalks. AI is central to these initiatives, helping enhance urban planning, public safety, and overall city management.

Future-proofing the economy, workforce

Amid concerns about AI’s impact on the Philippine workforce, it’s important to view AI as a complement to human talent. The potential of AI in the Philippines is even more pertinent, given the nation’s strong tech talent pool and thriving business process outsourcing (BPO) industry.

To fully harness AI’s potential, the Philippines must prepare its workforce for rapid technological shifts. Filipinos have demonstrated a remarkable openness and enthusiasm for the technology, with 86 percent of knowledge workers using AI in their workflows — well above the global average of 75 percent, according to a Microsoft-LinkedIn study.

This highlights the workforce’s readiness and AI’s impact on productivity, efficiency and creativity. Business leaders recognize this shift, emphasizing the need to invest in AI tools and upskilling to stay competitive in a fast-evolving landscape.

Resilient, adaptive networks

As AI applications expand, the increasing demand for data processing and real-time analysis will put a strain on existing network infrastructure. A recent Ciena survey among telecommunication and IT engineers identified inadequate data center interconnect infrastructure as a primary network-related obstacle to AI growth, potentially hindering the country’s ability to support increasing data demands.

To that end, robust data infrastructure in the form of large-scale data management systems must be developed to handle vast amounts of information efficiently. A key solution is the creation of data lakes, which allow enterprises and public cloud providers to store, process and transform data in real time.

Interestingly, while AI drives increased network traffic, it also plays a crucial role in optimizing network efficiency. The same survey revealed that more than half of telecom and IT engineers in the Philippines believe that AI can improve network efficiency by 40 percent or more.

Indeed, intelligent, scalable and adaptive networks will play a crucial role in addressing the increased bandwidth performance demands stemming from the rise of AI applications. For instance, networks supercharged with AI are better able to learn from new data and dynamically adjust to changing demands in real time, increasing bandwidth as needed, and reducing latency to ensure smooth and seamless AI operations. Automation and analytics-driven networks can streamline network management and enable scalable, high-volume data transfers, reducing bottlenecks and ensuring the timely delivery of services.

Fostering collaborations

Above all, realizing the Philippines’ AI vision will require collaboration among various players in the AI ecosystem. While the government plays a crucial role in driving AI readiness through regulatory policies and guidelines, collaborations with private sector stakeholders are needed to accelerate infrastructure developments.

Furthermore, cross-industry collaboration can foster the development of innovative solutions that enhance network performance, improve operational efficiency, and promote sustainable development.

One promising example is the recent partnership between the Department of Information and Communications Technology (DICT) and the Public-Private Partnership (PPP) Center on initiatives including the Fiber-enabled Free Public Internet Access Project and a fiber optic conduit network from La Union to Sorsogon. These collaborations are essential for laying the groundwork for the Philippines’ AI-driven future.

Bridging the gap

With growing adoption in both the public and private sectors, there is optimism about AI’s potential and the country’s ability to leverage it for economic growth and transformation.

To get there, the gap between AI vision and reality in the Philippines can be bridged through a multi-faceted approach where investments in intelligent network infrastructure are fueled by cross-sector collaboration and supportive policies. This way, the country can better align its AI goals with actionable outcomes, ensuring long-term growth and competitiveness in the global AI landscape.

Madhusudan Pandya is the senior advisor for International Market Development at Ciena, global provider of optical and routing systems, services and automation software.