Lack of talent constrains Philippine organizations’ AI ambitions

PHILIPPINE organizations are ramping up their adoption of artificial intelligence (AI) but face difficulties in hiring and retaining workers equipped with AI skills, according to a study by global professional services firm Aon plc.

Aon’s inaugural “Human Capital Trends Study” released last week showed a gap between AI ambition and workforce readiness in the Philippines.

According to the report, 72% of organizations in the country said they have already deployed AI or are piloting AI programs, keeping in step with global AI adoption trends.

“This progress is supported by continued investment in workforce development, with 94% of organizations expecting AI to create new roles and reshape skill requirements,” Aon said.

However, only 17% of these organizations said they can recruit and retain enough AI-skilled talent, seven percentage points below the global average. “(L)imited availability of AI talent, underdeveloped pay transparency practices and a widening gap between employee expectations and workplace experience continue to shape workforce outcomes.”

“Organizations in the Philippines are taking meaningful steps to prepare their workforce for the future through AI adoption and skills investment,” Rahul Chawla, partner and head of Talent Solutions in Southeast Asia for Aon, said.

“As demand for talent continues to grow, organizations that align workforce planning, job architecture and pay strategies with AI adoption will be better positioned to translate innovation into growth.”

Aon said human resources data maturity in the Philippines is high, which gives organizations a strong foundation for more informed workforce decisions.

However, this is not yet fully translating into workforce outcomes, with just 20% of organizations having a clearly defined and well-understood employee value proposition.

This limits their ability to connect workforce insight with engagement and retention, it said.

It added that 77% of organizations said they believe their wellbeing strategies meet workforce needs, but only 25% report strong and visible leadership commitment.

Benefits-wise, while 71% of employees said they value customized benefits, only 9% report receiving them.

“This imbalance extends to compensation practices. Pay transparency remains underdeveloped, with only 13% of organizations reporting mature practices, and 55% have not benchmarked compensation recently, which may influence their ability to compete effectively for talent as demand continues to grow,” Aon added.

“Organizations are making meaningful investments in benefits and employee experience, with an opportunity to further strengthen clarity, personalization and communication,” said Cris Rosenthal, strategic advisory lead for Human Capital capabilities in the Philippines for Aon. “Closing the gap between employer intent and employee experience will require more integrated, data-driven and personalized approaches to health and benefits which will be key to improving engagement and workforce performance.”

The company said organizations must be able to meet rising employee expectations so they can translate their AI investments into measurable outcomes.

“Future growth will depend less on the pace of investment and more on the effectiveness of execution.”

Philippine organizations need to come up with actionable workforce and talent strategies to retain AI talent, strengthen compensation transparency and benchmarking, and align their benefits with employee experience, it added.

“As the Philippines continues to evolve as a key talent and services hub in Asia, aligning technology investment with workforce strategy will be key to sustaining growth and strengthening long-term competitiveness.” — Bettina V. Roc