Microsoft has released its 2025 Work Trend Index, highlighting a major shift in how organizations in the Philippines approach work, with artificial intelligence (AI) becoming central to strategy and operations.
Why it matters: AI is not just enhancing work—it’s reshaping how teams operate. Microsoft’s findings suggest that Filipino companies are entering a phase where AI is part of the core workforce, not just a supporting tool.
The report introduces the concept of the “Frontier Firm”—organizations that are fully integrating AI into their business models. According to Microsoft Philippines CEO Peter Maquera, this shift marks the beginning of a new era where AI acts as a co-pilot, helping businesses rethink productivity, roles, and operations.
Key findings in the Philippines:
- 86% of local business leaders say 2025 is a critical year to rethink their operations.
- 89% believe they’ll be using AI agents as digital team members within 12 to 18 months.
- 42% plan to use AI to expand team capacity, while 44% prioritize upskilling.
- 33% of leaders are considering workforce reductions as part of AI integration.
- 80% expect to hire for AI-focused roles in the next year.
Employees and leaders are also changing how they interact with AI. While 53% of workers still use it for command-based tasks, 46% now see AI as a thought partner. Meanwhile, 44% of leaders report already using AI to automate entire team workflows.
A new type of leader is emerging The report also outlines the rise of the “agent boss”—leaders who manage not just people, but also AI systems. Over the next five years, Philippine leaders expect their teams to:
- Redesign processes using AI (46%)
- Build AI systems to handle complex tasks (54%)
- Train and manage AI agents (48% and 41%, respectively)
However, there’s a noticeable knowledge gap. While 60% of leaders say they’re familiar with AI agents, only 42% of employees feel the same. This gap is expected to drive more focus on AI training and digital skills development, with 55% of managers seeing it as a key responsibility moving forward.
Microsoft is also rolling out updates to its Copilot platform under “Copilot Wave 2,” offering smarter AI tools designed to support roles across the workforce—from frontliners to executives.
With AI now more accessible and scalable, Microsoft says Filipino businesses that invest early in AI skills and systems will be better positioned to lead in the changing world of work.
How ready do you think Filipino organizations are to embrace this AI-led future?
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