ONLY 18% of Philippine companies have begun adjusting their office portfolios for artificial intelligence (AI) despite 79% expecting the technology to significantly reshape corporate strategy over the next three to five years, according to a JLL survey.
JLL Philippines Head of Research and Advisory Janlo de los Reyes said the findings point to a “large disconnect” between companies’ recognition of AI’s potential and action on their corporate real estate (CRE) strategies.
While awareness is high, 48% of organizations remain in the assessment stage, analyzing AI’s impact on CRE functions, while 46% are monitoring broader AI trends.
“Everyone recognizes it, but at the same time, only a few people have actually mobilized or taken action with regard to their portfolio,” Mr. de los Reyes said during the property consultancy firm’s second-quarter market briefing on Thursday.
The execution gap comes as companies 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.
However, rising operating costs and investment requirements continue to slow implementation.
The consultancy said the biggest barriers to creating value from AI are skills gaps in AI and emerging technologies (48%), organizational silos (36%), and regulatory complexity (32%).
According to JLL, shortages in AI-related skills have overtaken budget constraints as the leading obstacle to transformation for the first time in the survey’s 15-year history.
Mr. de los Reyes said companies see AI as a tool to redesign jobs rather than reduce headcount.
“In terms of what organizations view, it’s actually the opposite. There’s more talent sparsity, so it’s really more about reskilling our current talent pool as opposed to eliminating or reducing headcount.”
He added that companies want to adopt smart-building technologies but remain cautious about the costs associated with automation.
JLL’s survey showed that 52% of respondents identified economic volatility and budget pressures as the biggest risks to their real estate portfolios over the next three to five years.
Despite these challenges, Mr. de los Reyes said occupiers continue to favor higher-quality office space, with companies increasingly choosing prime locations and future-ready workplaces offering hospitality-grade services and customized workplace experiences.
“It’s no longer just how big, but what kind of space do 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 among human resources, information technology, and finance teams. — Juliana Chloe A. Gonzales