Philippines AI Growth Faces Infrastructure and Talent Gaps, STT GDC Report Warns

The Philippines is accelerating its push into AI but major gaps could hold it back 

A new report shows that while companies are already building AI solutions, limitations in infrastructure, talent, and investment are slowing real progress. As demand for AI rapidly grows, the big question is no longer adoption but readiness.

Can the country keep up or will these gaps delay its AI future? 

Carlo Malana, President and CEO of STT GDC Philippines, sharing the highlights from “Mind the Gap: Bridging the AI Infrastructure Readiness Divide” report.

The Philippines is moving quickly into artificial intelligence, with more organizations shifting from early experimentation to real-world deployment. But while momentum is building, a new report suggests the country may struggle to keep pace as demands increase.

According to ST Telemedia Global Data Centres (STT GDC), the Philippines shows strong early adoption of AI but faces critical limitations that could slow its long-term growth. Its latest study, Mind the Gap: Bridging the AI Infrastructure Readiness Divide, highlights a widening gap between ambition and actual readiness.

During the Mind the Gap session, Carlo presented that the findings show that 79% of Philippine organizations are already in the “Builder” stage, actively deploying AI solutions. However, only 2% have reached the “Integrator” stage, and none have progressed to “Leader” status. Meanwhile, 19% are still in the Explorer phase. This sharp drop-off suggests that while many are starting, very few are able to scale.

At the center of the challenge is infrastructure

Around 71% of respondents cite limited compute capacity, storage, and network bandwidth as the biggest barrier to advancing AI initiatives. Even for organizations already using AI, 71% report that latency, bandwidth constraints, and network bottlenecks are affecting performance. These limitations make it difficult to support more complex, data-heavy, or mission-critical AI applications.

Talent and expertise are adding another layer of pressure

Malana emphasized that beyond infrastructure, the Philippines also needs more people who are willing and ready to integrate AI into their daily work and operations, highlighting that adoption is as much about mindset as it is about capability.

“Many organisations are already investing in AI infrastructure, but the capability to operate and optimize these environments is still a major gap,” he said. “The report shows that 53% lack the in-house expertise to manage complex AI environments, while only 8% say they have strong internal AI talent.”

He added that true readiness goes beyond simply having systems in place, pointing to the need for stronger support and expertise to fully unlock AI’s potential.

“At STT GDC Philippines, we see our role as helping organizations close that gap by combining infrastructure with the technical environment and expertise that can support bigger scale.”

Beyond skills, organizational readiness also remains uneven. Around 94% of 9respondents describe their culture as cautious or uncertain toward AI adoption, showing that challenges go beyond technology and into mindset and operations.

Sustainability is another area that could shape the future of AI in the country but is currently being overlooked

“The study shows that only 18% say sustainability will shape their infrastructure plans, and just 2% consider it when choosing partners. This shows that sustainability is often treated as a secondary priority, and this disconnect can lead to higher long-term costs and inefficiencies. As workloads become more energy-intensive, efficiency becomes critical to both cost and long-term viability. At STT GDC Philippines, we’re enabling organisations to scale AI responsibly through energy-efficient infrastructure and a strong commitment to renewable energy and sustainable operations.”

Looking ahead, the gap between ambition and readiness may continue to grow.

Nearly half of respondents, or 46%, expect AI workloads to increase by more than 50% over the next one to three years. However, only 3% say they are currently ready to support high-demand AI workloads at scale. At the same time, 86% report allocating 5% or less of their IT budgets to AI, raising concerns about whether current investments can support future needs.

For the Philippines, the stakes are clear.

AI presents a major opportunity to drive innovation, improve services, and strengthen competitiveness across industries. But without the right balance of infrastructure, talent, and long-term strategy, progress could slow just as global competition intensifies.

As more organizations push forward with AI, the next phase will not just be about adoption but about scaling effectively. The real question now is whether the country can build the foundation needed to fully unlock AI’s potential.