As featured on BusinessMirror: Before chasing agentic AI, fix your generative AI adoption problem
Artificial intelligence (AI) has already become a natural part of daily life. From smart home devices to digital assistants like Siri, Alexa, and Google Assistant, people regularly rely on AI without even realizing it.
From automating cutting-edge tasks to supporting creativity, the promise of Generative Artificial Intelligence (Gen AI) to revolutionize productivity and innovation is clear.
These tools provide quick answers, automate routines, and enhance convenience, further solidifying the idea that if AI is used well, it can not only improve the quality of life but also increase efficiency. Its widespread personal use highlights an important reality: if AI can streamline everyday tasks, then businesses have even more reason to adopt and capitalize on such powerful technology within the workplace.
However, integrating AI into the professional workspace requires more than just making the tools available to employees. Such tools must be carefully tailored to the specific demands of a job before it can be effectively integrated into the workplace.
However, despite organizations investing heavily in Gen AI, with an expected annual growth rate of 36.6 percent from 2023 to 2030, only 0.5-3.5 percent of employees' work hours are spent using these tools. Further, research from KPMG shows that over half of companies report no improvement in performance or profitability from their digital transformation efforts over the past five years.
This lack of return on investment suggests that the implementation of AI capabilities is not strategic enough. It also indicates that opportunities to maximize employee engagement are being missed.
Driving Gen AI adoption in the Philippines
In the Philippines, generative AI is increasingly recognized as a driver of productivity and innovation. According to a policy note by the National Economic and Development Authority (NEDA), AI adoption has significant potential to boost economic growth, improve efficiency, and create opportunities for workforce upskilling.
Despite this potential, workplace adoption in the country remains limited. In a recent report by the Philippine Institute for Development Studies, only 14.9 percent of companies currently use AI tools, with adoption concentrated in large companies and urban centers, particularly in ICT and BPO sectors. Many smaller businesses lag behind due to gaps in awareness, digital skills, funding, and infrastructure. This highlights the growing divide between large and small businesses, emphasizing the need for targeted strategies to support AI adoption among smaller organizations.
Recognizing these challenges, experts emphasize the importance of a thoughtful, tailored approach.
By putting these principles into practice, Filipino businesses can not only adopt AI effectively but also create an environment where employees feel empowered to explore and leverage these tools. This approach enhances efficiency, supports human creativity, and builds a strong foundation for future technologies, ensuring companies are well-positioned to remain competitive in a rapidly evolving, AI-driven economy.
This excerpt was taken from the KPMG Thought Leadership publication “Before chasing agentic AI, fix your generative AI adoption problem”.
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This article is for general information purposes only and should not be considered as professional advice to a specific issue or entity. The views and opinions expressed herein are those of the author and do not necessarily represent KPMG International or R.G. Manabat & Co.