Data governance concerns hamper AI adoption in PHL

MANY Philippine organizations lack the necessary data architecture to achieve returns on their growing investments in artificial intelligence (AI), highlighting the importance of data governance, according to a study commissioned AI data activation company Boomi.

The survey conducted by Omdia for Boomi showed that 73% of Philippine organizations are already running AI initiatives, with nine of 10 saying they expect AI-enabled automation to reshape their business processes within two to three years.

“There’s a lot of excitement around AI in the Philippines right now, with many organizations clearly defining KPIs (key performance indicators) to measure success,” said David Irecki, chief technology officer for Asia-Pacific and Japan at Boomi. “However, there is a need to reduce tool sprawl, improve governance, and connect data across the enterprise for those KPIs to translate into real business value.”

The study found that 50% of Philippine organizations have defined KPIs to measure AI success. This is the highest rate among all surveyed markets and is well above the regional average of 37%.

Meanwhile, only half of Philippine enterprises have an integration platform-led approach, but 93% said they plan to shift toward a unified, enterprise AI-ready platform, while 92% are seeking opportunities to reduce tool and technology sprawl to manage cost, complexity, and operational risk.

However, they also recognize limitations in terms of data quality, according to the study.

While 97% of the surveyed companies said they expect AI initiatives to drive an increased focus on data quality and governance policies and approaches and 57% already have formal AI-specific data governance policies in place, nearly nine in 10 said unmanaged shadow integrations are already a challenge for data quality and confidence, Boomi said.

It added that 82% of the respondents expressed concerns about data residency and sovereignty requirements, but only 35% said those concerns are having a significant impact on their data integration or AI strategies.

This shows that many Philippine enterprises are still in the early stages of operational planning.

“Philippine organizations are not naive about the risks,” Michael Barnes, chief analyst, Enterprise IT Asia at Omdia, said. “Most organizations recognize that governance is essential to scaling AI responsibly. However, the real challenge lies in moving from awareness to execution. Organizations that successfully operationalize AI governance are embedding clear policies, accountability, and oversight into everyday processes. And they’re the ones most likely to realize measurable business value and stronger returns on their AI investments.”

“As AI initiatives in the Philippines expand, the ability to connect data, applications, and processes across the enterprise becomes increasingly important. When scaled in silos, AI will continue to be disconnected from broader business outcomes. The solution to that is to reduce technology sprawl and move toward unified platforms,” Mr. Irecki added.

The Omdia study commissioned by Boomi covered over 1,100 senior technology and business decision-makers in five countries across Asia-Pacific. — Bettina V. Roc