AI Adoption and Data-Driven Capabilities Accelerate in the Philippines, Yet Talent Gaps Threaten Progress, Aon Study Reveals
MANILA, PHILIPPINES – 1 July 2026 – Aon plc (NYSE: AON), a prominent global professional services firm, has published its inaugural Human Capital Trends Study, revealing significant developments in the Philippine workforce. The findings indicate that organizations are rapidly embracing artificial intelligence (AI) and enhancing data-driven capabilities, bolstered by robust participation in upskilling initiatives. However, challenges such as a shortage of AI talent, inadequate pay transparency, and a growing disconnect between employee expectations and workplace experiences continue to influence workforce dynamics.
Accelerated AI Adoption
The study indicates that 72 percent of organizations in the Philippines have either implemented AI or are currently piloting AI programs. This adoption reflects a commitment to integrating AI into organizational processes, supported by substantial investments in workforce development. Notably, 94 percent of organizations anticipate that AI will generate new roles and redefine skill requirements.
Despite this progress, only 17 percent of organizations report being able to effectively recruit and retain AI-skilled talent. This statistic underscores a significant gap between the ambition for AI integration and the current readiness of the workforce.
Rahul Chawla, partner and head of Talent Solutions in Southeast Asia for Aon, emphasized the proactive measures organizations are taking to prepare their workforce for future challenges. He stated that aligning workforce planning, job architecture, and compensation strategies with AI adoption will position organizations to better leverage innovation for growth.
Data Maturity as a Foundation
The findings reveal a strong foundation in workforce data, with over half (53 percent) of organizations reporting high levels of HR data maturity. This maturity is supported by benchmarking tools such as Aon’s Radford McLagan Database, which aids organizations in making informed workforce decisions.
However, this capability has not yet translated into improved workforce outcomes. Only 20 percent of organizations have a clearly defined employee value proposition, which limits their ability to effectively link workforce insights with employee engagement and retention strategies.
Discrepancies in Employee Expectations and Benefits
While organizations express confidence in their people strategies, there remains an opportunity to enhance alignment with employee experiences. Seventy-seven percent of organizations believe their wellbeing strategies adequately address workforce needs; however, only 25 percent report strong leadership commitment to these strategies.
A similar disparity is evident in employee benefits. Although 71 percent of employees value customized benefits, only 9 percent indicate they receive such offerings. This gap highlights the need for employers to better align their benefits with employee expectations.
Compensation practices also reflect a lack of transparency. Only 13 percent of organizations report mature pay transparency practices, and 55 percent have not benchmarked their compensation recently. This situation may hinder their ability to attract and retain talent in a competitive market.
Cris Rosenthal, strategic advisory lead for Human Capital capabilities in the Philippines for Aon, noted that organizations are making significant investments in employee benefits and experiences. He highlighted the importance of enhancing clarity, personalization, and communication to bridge the gap between employer intentions and employee experiences.
Aligning Investments with Measurable Outcomes
The study’s findings indicate that while AI adoption and data maturity are progressing, rising employee expectations are increasing pressure on organizations to demonstrate tangible outcomes from their investments. Future growth will hinge not only on the pace of investment but also on the effectiveness of execution.
To succeed, organizations in the Philippines should focus on three key priorities:
- Transforming strong data maturity into actionable workforce and talent strategies.
- Enhancing compensation transparency and benchmarking to compete for limited skills.
- Aligning benefits design with employee experiences through personalization and clearer communication.
As the Philippines continues to establish itself as a vital talent and services hub in Asia, aligning technology investments with workforce strategies will be crucial for sustaining growth and enhancing long-term competitiveness.
About the Report
Aon’s Human Capital Trends 2026 Study surveyed 2,361 business, HR, and people leaders globally, including 504 respondents from the Asia-Pacific region, covering markets such as Australia, China, Hong Kong, India, Malaysia, the Philippines, and Singapore. For further details on the report, visit this link.
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Published on 2026-07-01 06:18:00 • By the Editorial Desk
