ONLY 18% of Philippine firms have begun adjusting their office portfolios for artificial intelligence (AI) despite 79% expecting the technology to significantly reshape corporate strategy over the following three to 5 years, in line with a JLL survey.
JLL Philippines Head of Research and Advisory Janlo de los Reyes said the findings point to a “large disconnect” between firms’ recognition of AI’s potential and motion on their corporate real estate (CRE) strategies.
While awareness is high, 48% of organizations remain within the assessment stage, analyzing AI’s impact on CRE functions, while 46% are monitoring broader AI trends.
“Everyone recognizes it, but at the identical time, only a couple of people have actually mobilized or taken motion with regard to their portfolio,” Mr. de los Reyes said throughout the property consultancy firm’s second-quarter market briefing on Thursday.
The execution gap comes as firms rethink the role of office space amid growing AI adoption.
JLL found that 76% of organizations are prioritizing long-term CRE transformation, while 66% are pursuing AI-driven buildings.
Nevertheless, rising operating costs and investment requirements proceed to slow implementation.
The consultancy said the largest barriers to creating value from AI are skills gaps in AI and emerging technologies (48%), organizational silos (36%), and regulatory complexity (32%).
In response to JLL, shortages in AI-related skills have overtaken budget constraints because the leading obstacle to transformation for the primary time within the survey’s 15-year history.
Mr. de los Reyes said firms see AI as a tool to revamp jobs fairly than reduce headcount.
“By way of what organizations view, it’s actually the other. There’s more talent sparsity, so it’s really more about reskilling our current talent pool versus eliminating or reducing headcount.”
He added that firms need to adopt smart-building technologies but remain cautious in regards to the costs related to automation.
JLL’s survey showed that 52% of respondents identified economic volatility and budget pressures as the largest risks to their real estate portfolios over the following three to 5 years.
Despite these challenges, Mr. de los Reyes said occupiers proceed to favor higher-quality office space, with firms increasingly selecting prime locations and future-ready workplaces offering hospitality-grade services and customised workplace experiences.
“It’s not just how big, but what sort of space can we envision for our organization,” Mr. de los Reyes said, adding that the office has evolved into an experiential destination.
To bridge the execution gap, JLL said organizations should partner with external providers where internal AI expertise is lacking and strengthen collaboration amongst human resources, information technology, and finance teams. — Juliana Chloe A. Gonzales