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AI agents paving the way for a new era of productivity in the Philippines

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December 25, 2024
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AI agents paving the way for a new era of productivity in the Philippines
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By David Irecki

THE PHILIPPINES, a nation brimming with potential, is facing a productivity challenge. While the labor force is undeniably talented, it is experiencing an efficiency gap compared to its Association of Southeast Asian neighbors. The country’s productivity per worker of $24,830 pales in comparison to Singapore ($186,180), Malaysia ($71,100), and Indonesia ($28,630).

However, generative artificial intelligence (GenAI) can be harnessed to raise productivity. Deloitte estimates the technology can save 16% of working time — or more than 11 billion hours — in the Asia-Pacific every week. This amounts to saving almost a whole day a week through the complete automation of certain tasks and augmenting processes when workers integrate AI into their workflows. AI deployments can benefit the country to the tune of P2.6 trillion (about $44.2 billion) annually, according to National Economic and Development Authority Secretary Arsenio M. Balisacan.

AI AGENTS — CATALYSTS FOR TRANSFORMATIONAs the Philippines embraces digitalization, the use of AI agents is essential to increasing productivity and remaining competitive in a rapidly evolving global market. These intelligent software entities represent a significant evolution in GenAI. Their ability to perform tasks autonomously, reason, and make decisions within their defined scope without human intervention empowers them to act independently and adapt to changing environments. As a result, organizations are able to leverage them more effectively for productivity and efficiency gains.

AI agents can be used to improve customer service by providing instant support through chatbots — from answering frequently asked questions to resolving issues and ensuring customers receive timely assistance. In addition, they can support e-commerce by recommending products based on user preferences and analyzing buying behavior to deliver personalized experiences that boost sales.

The AI market in the Philippines is growing rapidly, with a projected expansion of nearly 36% to reach $772.1 million this year. The adoption of AI-powered chatbots for customer service and data analysis across industries is becoming increasingly common. This trend is expected to continue as companies realize the cost-saving benefits and improved efficiency of AI-powered solutions.

These examples only scratch the surface of the possibilities that AI agents can offer. Since AI agents can execute entire sequences of tasks on their own, there is an opportunity to move beyond passive applications of AI to a more proactive model. This transition from mere automation to “autonomous actions” could revolutionize decision-making processes as AI capabilities evolve from productivity tools to something that can actively manage interconnected business operations.

AN AI READINESS BLUEPRINTThis all sounds promising, but for AI agents to work effectively, think logically and make decisions, the quality of their training data is critical. Unfortunately, Boomi’s AI Readiness Assessment shows that 73% of organizations are still struggling with data readiness. The problem? Data that is fragmented, undiscoverable or simply unreliable, all of which could significantly derail organizations’ AI initiatives.

Data is the backbone of AI. To use AI effectively, organizations need to have a solid data foundation in place, and that starts with fostering strong data quality and data liquidity. It is not just about having data, but rather which data is more important than others. The real advantage comes from providing AI with the right data at the right time and in the right form.

Thus, to be AI-ready, organizations need a clear understanding — even a map — of where their data resides, what value it has, who owns it, and how it is generated, processed, secured, and governed. Only once this foundation has been laid can companies harness the potential of AI to turn raw data into useful information, which can then be transformed into actionable intelligence and tangible outcomes.

STARTING WITH THE BASICSThe journey towards enhanced productivity is contingent on how effectively Philippine organizations can connect their data, systems, and applications to fully harness the power of AI to bridge the productivity gap and foster innovation.

Amid various business disruptions locally and globally, organizations that invest in data readiness will be well-positioned to future-proof themselves to achieve growth and success for a long time.

David Irecki, Boomi Chief Technology Officer for APJ

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