A new report by ST Telemedia Global Data Centres (STT GDC) highlights a growing gap between ambition and readiness among Philippine organizations adopting artificial intelligence (AI).
The study, titled “Mind the Gap: Bridging the AI Infrastructure Readiness Divide,” shows that 79% of local organizations are already in the “Builder” stage—meaning they are actively using early AI solutions. However, only 2% have advanced to the more mature “Integrator” level, and none have reached “Leader” status. Meanwhile, 19% are still in the early “Explorer” phase. This suggests many organizations are struggling to move beyond initial AI adoption.
While momentum is strong, the findings indicate that infrastructure limitations are becoming a binding constraint. Seventy-one percent of respondents said they lack enough computing power, storage, or network capacity to support more advanced AI use. While current systems can handle basic tasks, the same percentage reported issues such as slow speeds and network congestion, which limit performance and prevent more complex AI applications.
A shortage of skilled workers is also slowing progress. More than three-quarters (76%) of companies reported gaps in AI talent, and more than half (53%) admitted they do not have the expertise needed to manage AI systems effectively.
Workplace culture also plays a role—94% of respondents described their organizations as cautious or uncertain about AI adoption.
“The data shows a clear pattern—Philippine organizations are investing and experimenting with AI, but many are reaching an infrastructure and capability ceiling,” said Carlo Malana, President and CEO, STT GDC Philippines.
“Compute, storage and connectivity constraints, combined with a shortage of specialised operational expertise, are making it difficult to move from pilots to reliable, scaled deployment. Addressing these challenges together is essential if organisations are to fully realise the value of AI,” he added.
Looking ahead, demand for AI is expected to grow quickly. Nearly half of respondents expect workloads to increase by over 50% in the next few years. However, only 3% say they are ready to handle that growth, raising concerns about whether companies are prepared for the future.
