Only 18 percent of Philippine companies have started adjusting their office portfolios to accommodate artificial intelligence, even though nearly eight in ten anticipate the technology will reshape corporate strategy within the next three to five years.
The contrast between recognition of AI’s potential and actual action highlights a significant execution gap in corporate real‑estate planning.
Nearly half of organizations remain in the assessment stage, evaluating AI’s impact on real‑estate functions, while a comparable portion simply monitors broader AI trends.
As firms reconsider the purpose of office space amid expanding AI adoption, a majority are prioritizing long‑term transformation and the integration of AI‑driven building technologies.
However, rising operating costs and investment requirements continue to impede implementation efforts.
Key obstacles identified include skill shortages in AI and emerging technologies, internal silos, and regulatory complexity, with skill gaps now surpassing budget constraints as the leading barrier.
Many companies see AI as a tool for redesigning job roles rather than reducing headcount, emphasizing the need to reskill existing talent pools.
Despite a desire to adopt smart‑building solutions, firms remain cautious about the financial implications of automation.
Economic volatility and budget pressures emerge as the top risks affecting real‑estate portfolios over the next three to five years.
In spite of these challenges, occupiers continue to favor high‑quality office spaces, selecting prime locations that offer hospitality‑grade services and customized workplace experiences.
The modern office is increasingly viewed as an experiential destination, prioritizing the type of space over its size.
Bridging the execution gap may involve partnering with external experts where internal AI capabilities are limited and fostering stronger collaboration among human resources, information technology, and finance teams.
