SOFTWARE company Sprout Solutions said on Wednesday that 88% human resources (HR) professionals in the Philippines have minimal to moderate exposure to artificial intelligence (AI).

The report added that Philippine companies are slow to adopt AI in their operations, leaving much upside for AI penetration.

It found that only 12% of companies have high exposure to AI, 27% moderate exposure, 33% low exposure, and 28% minimal exposure.

‘It’s clear that embracing technology and AI is critical for organizational success by embracing digital transformation, prioritizing employee well-being, and ensuring government compliance,” Sprout Solutions CEO Patrick Gentry said in a statement.

Changing the perception of AI usage in HR practice is key to bridging the gap, according to Arlene C. de Castro, chief people and customer officer of Sprout Solutions, at a briefing accompanying the State of HR report launch.

The 2024 study found that firms are investing in HR technology and that 65% of organizations are using human resource information systems. The uses of online learning platforms is also at 65%.

Applicant tracking systems are used by 43% of companies, to streamline recruitment and candidate management, the study found.

Tools like Slack or Microsoft Teams to improve collaboration and communication in remote or hybrid work setups are used by 53% of firms, while 57% use payroll software to automate and simplify payroll processing.

The study found that security concerns are an issue in AI adoption in HR. Only 30% of firms are extremely ready and ready to adopt AI, followed by 31% unready and extremely unready, while 39% of firms say they are moderately ready.

Accuracy of data and AI governance are also among the ethical concerns revealed by the study when using AI in HR. — Chloe Mari A. Hufana