FilipINNOVATION - Discussions on AI, Sustainability and Future workforce in the Philippines: Day 1 AIBP C&E PH
The 48th edition of the ASEAN Innovation Business Platform (AIBP) Conference and Exhibition took place over 2 days in Manila, Philippines on 17 - 18 September 2024.
As the Philippines stands at a crucial inflection point in its digital evolution, the conference dived into three critical areas shaping the future of business in the country:
The strategic adoption of data and artificial intelligence (AI) technologies
Building resilience in the future workforce amidst rapid technological change
Integrating sustainability into core business strategies for responsible growth
Through a series of insightful presentations and panel discussions, participants gained valuable perspectives on the opportunities and challenges lying ahead, with a focus on practical solutions and real-world applications to drive efficiency, innovation, and sustainable growth in Philippine enterprises.
Insights and Strategies in Data and AI Adoption
As artificial intelligence (AI) continues to reshape industries, harnessing data and AI technologies is key to propelling the Philippines forward in its digital evolution. The discussion underscored the importance of a strategic approach to AI adoption that balances technological innovation with practical business needs and local cultural considerations.
Key takeaways from the discussion with insights from MERALCO , Security Bank Corporation, Megaworld Corporation, Globe Telecom and Universal Robina Corporation include:
Data-Driven Economy: Developing a data-driven economy requires customised data architecture, especially to accommodate local languages like Taglish (a mix of Tagalog and English). Improved data governance is essential to fuel the country's digital leap.
Business Alignment: Emphasise clear alignment between AI initiatives and business value. Secure strong business support for addressing real problems.
Challenges with AI: Ensuring data quality, managing the cost of AI technologies, and addressing AI product fatigue by aligning tools with organisational needs and skills.
Productivity Gains: Organisations must balance AI as a productivity tool for technologists and general users, and assess whether AI tools are truly enhancing productivity.
AI Implementation Strategy: Combine large language models (LLMs) with smaller models (SLMs) for more effective AI training and deployment. Start small with data services, focus on solving key pain points, and ensure top-down alignment within the organisation for successful adoption.
Business leaders sometimes expect AI to assist in areas with poor data collection. For example, city planning - you cannot expect Gen AI to create a good urban model, because it hasn't learned what a good urban model is. For instance, data around accidents is actually very scarce, and AI cannot create effective urban models or predict accidents without sufficient data. Both structured and unstructured data are crucial for AI to learn and perform well in these areas.
Francis Adrian Viernes, CFA, MSF, CCREP,PMDSA , Assistant Vice President - Chief Data Scientist Head of Data Analytics / Data Science, Megaworld Corporation
Productivity gains (from AI) can be hard to quantify. We may learn a lot, but that’s not a hard ROI. Culture in the workplace has to be one that really understands what is highly quantifiable part ROI versus what is seeding for a potential future in terms of that particular investment. Without this understanding and the right AI infrastructure, it's challenging to succeed with AI projects. These two factors are key to assessing risk and benefit relative to investments.
Patrick Meneses , Senior Vice President, Chief Data Officer of Enterprise Data Office, Security Bank Corporation
To drive AI adoption, we need to spread knowledge beyond the corporate world. The rapid rise of generative AI, like ChatGPT surpassing major platforms in months, caught everyone off guard, and we’re still adjusting, trying to educate our organisation, our people, and it’s a process, right?. We encourage employees to use AI, supported by Responsible Use Policies and education. The more it's used, the more it benefits the organisation through innovation. At Meralco, we empower data engineers across the company to use data and AI technology, fostering a decentralized, social approach to adoption where they know what manual process they can address and what problems can be addressed by gen AI technology .
Rocky Bacani , First Vice President and Head of Information, Communication, Technology and Transformation, MERALCO
Building Resilience for the Future Workforce
As organisations across the Philippines embrace AI and digital tools, they face the challenge of balancing innovation with ethical considerations and workforce concerns. This shift is reshaping traditional roles and necessitating a strategic approach to prepare for the future workplace. Organisations need to blend strategic foresight with adaptability, understanding how technology and corporate culture shape long-term success.
Key takeaways from the discussion with insights from BDO Unibank, Wilcon Depot, Inc. , FWD Insurance , and Metro Pacific Health include:
Diverse applications across Industries shows the importance of aligning business objectives with technology deployment.
Workforce Impact and Change Management: There's a growing concern about job displacement due to AI and automation. Organizations are encouraged to view AI as a tool for enhancement rather than replacement, fostering a culture of continuous learning and adaptation.
Organisational Agility: Fostering a "startup mindset" is seen as crucial for navigating the changes brought by AI, encouraging organizations to become more agile and innovative in their approach.
Quantifying ROI: It is also equally important to measure cost savings from automation and AI adoption across the organisation
It definitely takes awhile for some people to respond or maybe even assimilate to it, to be accepting of it. One of the critical debates in the last couple of years has been, will this replace me? Will I still survive after this? Will I end up becoming retired? I think that's key. If organisations view AI as a capability that allows for them to do more, to do better, to interact with their customers in a much more bespoke manner... then everybody will take advantage of that
Francis Chiu, MBCS MSCS , FVP, Head of Application Maintenance, BDO Unibank
Every time we invest in a new technology, we always provide justification for that. Attached to it is the cost benefit analysis, and we formulated KPIs around it, to measure whether what we promised is going to happen, and what is actually happening so far.
JC Principe , Chief Information and Transformation Officer, FWD Insurance
It's very important for the organisation, before you adopt AI or any new technology, that it should always support the business goal, and the mission vision of the company. Metro Pacific Health's vision is really to provide integrated health care that is accessible and sustainable to all Filipinos. Having said that, it's all about patient experience. So when we invest in something, that's one of the major KPIs that will be asked. How will it improve patient experience?
Frank Vibar, Chief Information Officer, Metro Pacific Health
Strategies for Sustainable and Responsible Growth
In the discussion "Smart Sustainability: Approaches for Responsible Growth in the Digital Age," key insights emerged on integrating sustainability into business strategy. This dialogue looked at the evolving landscape of corporate sustainability in the context of digital transformation and economic growth.
The conversation emphasised a holistic approach that creates shared value for both internal and external stakeholders. This perspective goes beyond traditional corporate social responsibility, positioning sustainability as a core driver of business innovation, competitive advantage, and long-term value creation
Key takeaways from the discussion include:
Holistic Approach to Value Creation: Integrating sustainability into business strategy by creating shared value for the entire ecosystem, including internal and external stakeholders.
Long-Term Decision Making: Emphasising the importance of long-term thinking in strategic decisions, even when faced with short-term challenges or uncertainties.
Balancing Profitability and Sustainability: Conducting thorough cost-benefit analyses for all initiatives, recognizing that quantitative results may take years to materialise.
Innovative Financing: Ensuring strong funding and liquidity to support sustainability transitions, which can be initially challenging and costly.
Aligning with National Goals: Focusing on areas that align with national needs and sustainable development goals, such as renewable energy development in the Philippines.
For us, sustainability has always been integral to creating value for shareholders. GCash and ACEN faced scepticism early on, with questions about their viability. For example, GCash entered a nascent payments landscape, initially struggling to make money, but the vision was that once the technology took off, it would unlock significant potential. Similarly, when ACEN started 14 years ago, renewables were not mainstream, and there were concerns about relying on government subsidies. However, we believed that if these technologies gained traction, they would thrive.
Jaime Urquijo , Chief Sustainability and Risk Officer, Ayala Corporation
Our sustainability investments paid off over time. While the benefits were qualitative in the first two years, by the third or fourth year, the financial impact became clear, as seen with Meralco's transition to renewables. The shift was challenging and costly, requiring strong funding and liquidity.
Chaye Cabal-Revilla , Chief Finance, Risk and Sustainability Officer, Metro Pacific Investments Corporation
I can't think of any situations where we said, well, that's a really good sustainable decision, but we're not going to do different financial reasons, because that just it doesn't really apply. Energy reduction programs to improve your carbon footprint ultimately lowers costs, sustainability education ultimately boosts product sales and staff loyalty, and all efforts contribute to long-term success. We're thinking long term, we're thinking holistically… We don't want to be trapped in any short term financial decisions. We want the right decisions for the very long term. This approach attracts high-quality investors who value long-term thinking, even if it means some might not invest due to uncertainty about immediate returns.
Tim Daniels, Consultant – Investors Relations & Sustainability, SM Investments
Stay tuned for Day 2 Summary of the 48th ASEAN Innovation Business Platform Conference & Exhibition Philippines
You can also read the takeaways from the:
45th Edition, AIBP C&E Thailand - Day 1 | Day 2
