Manila: Even with limited capital resources, micro, small, and medium enterprises (MSMEs) can harness artificial intelligence (AI) to enhance operational efficiency and boost profitability. This was stressed by Ambe Tierro, Country Managing Director and Technology Lead of global professional services and technology firm Accenture in the Philippines, on Wednesday.
According to Philippines News Agency, Tierro emphasized the availability of free AI services that MSMEs can leverage to benefit their core business operations. She noted that there are numerous specialized technologies that can aid MSMEs in various areas such as sales, marketing, and supply chain management.
MSMEs account for approximately 99 percent of business establishments in the Philippines and employ around 65 percent of the workforce. Despite this, their contribution to the country's annual domestic output remains relatively low at around 35 percent. To address this, government measures aim to provide capitalization and other support to expand their operations and enhance their contribution to the gross domestic product (GDP).
One such measure is the National AI Strategy Roadmap 2.0, implemented by the Department of Trade and Industry (DTI). Tierro highlighted that the program is partly based on recommendations from the Private Sector Advisory Council, a government body established in 2022 by President Ferdinand R. Marcos Jr. The council aims to provide strategic, real-world ideas to drive the domestic economy, accelerate infrastructure development, create employment opportunities, and ensure a sustainable business environment.
Tierro explained that AI can enable MSMEs to effectively manage their operations across the nation. She pointed out that AI serves as an instrument for diffusion, allowing more MSMEs outside the National Capital Region and beyond large enterprises to participate and benefit from the technology, thereby making it more inclusive.
Furthermore, Tierro addressed the misconceptions about AI, stating that while AI is a powerful tool, it is not a panacea for all business challenges. By demystifying AI, MSMEs can become more fluent and literate in its applications, ultimately integrating it more effectively into their business strategies.
