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Workplace fragmentation hampers AI adoption as Philippine firms struggle with digital transformation

• By Anjum Khan
Workplace fragmentation hampers AI adoption as Philippine firms struggle with digital transformation

The Philippines' push toward artificial intelligence (AI) adoption is being held back by fragmented workplace systems, unclear AI strategies, and insufficient employee training, according to a new study by Lark Technologies.

The report, The Paradox of Progress – Why a Broken Employee Experience is Sabotaging Adoption of AI in Workplaces in Southeast Asia, found that while organisations are investing in digital transformation, many have yet to establish the workplace foundations needed to support successful AI implementation.

The research suggests that adding more digital tools has not necessarily improved productivity. In the Philippines, 52% of employees lose at least three hours every week because of inefficient digital collaboration, while 80% report feeling overwhelmed by the number of workplace applications they are expected to use. Additionally, 58% said they check multiple platforms every hour just to keep up with work-related updates.

Lark warned that organisations risk undermining their AI investments by introducing new technologies into already fragmented digital environments.

"Unless organisations address that gap now, before they layer more AI on top of an already fragmented experience, they risk accelerating the wrong things," said Olivier Adam, General Manager for Asia Pacific at Lark.

The study also revealed a disconnect between leadership perceptions and employee experiences. While 77% of employers believe they empower their workforce, only 27% of employees feel they have enough autonomy to introduce new ideas and drive innovation.

AI readiness remains another key challenge. Although 83% of employees said they need more support in cybersecurity and AI productivity, only 24% believe they have received sufficient training to confidently use emerging technologies.

Despite these barriers, employees remain receptive to AI. The report found that 86% want AI to automate routine and repetitive tasks, indicating that resistance to the technology is low, but organisations need to provide greater clarity, skills development, and change management.

According to Adam, organisations that successfully scale AI will be those that prioritise both technology and people.

"Organisations that will lead in this next chapter of digital transformation are not those that simply move fastest on AI, but the ones that also bring their people with them," he said.

The findings underscore that as AI adoption accelerates across Southeast Asia, Philippine organisations will need to simplify digital workplaces, strengthen governance, and invest in workforce capability building to unlock the full value of AI.