Businesses told: Don’t fear AI, invest in it

CEBU, Philippines — Before it’s too late, companies are urged to invest seriously in Artificial Intelligence (AI) technology to catch up with the fast-paced digital innovation and stay competitive in business.

Speaking before over 200 delegates during the recently concluded Asia-Pacific Economic Cooperation (APEC) Business Advisory Council (ABAC) III meeting held at NUSTAR Convention Center in Cebu, Aboitiz Data Innovation (ADI) chief executive officer (CEO) Dr. David R. Hardoon stressed the importance of incorporating AI into the business—big or small, as this will enhance productivity, efficiency, and over-all business interoperability.

Instead of being afraid of the rise of AI, Hardoon said companies should instead invest in the technology, which is seen to change the business landscape in just a short time.

In the discussion dubbed “Who’s Afraid of AI: Making AI Work for Enterprises and Economies,” during the first day of the ABAC III meeting, Hardoon said AI can be used for enterprises and economies to reach the shared vision of sustainable and inclusive growth across the region.

“Start with the end, what is that we are seeking to achieve, and I guarantee you that it’s not about AI. Sharpen the focus with an appreciation of why we are pursuing that goal. Then, and only then, how. Biased as I may be, I assure you that data and AI will predominantly feature in the answers to these difficult or new questions. This is a call to action, to expedite, and to make it happen,” said Dr. Hardoon.

He echoed experts’ pronouncements that AI is not to replace human jobs but is a tool to help humans do their job efficiently, skipping the basic jobs and focusing on high-value work, saying AI is knowledge-taking data accumulated on the Internet over the years.

As the data science and artificial intelligence (DSAI) arm of the Aboitiz Group, ADI is an integral part of the Aboitiz Group as it undergoes its Great Transformation to become the Philippines’ first techglomerate, fueled by technology and a renewed entrepreneurial spirit. ADI operationalizes DSAI to transform data into business and sustainability outcomes, empowering synergies across the Group.

The session broke down and simplified the complexities of AI for enterprises to address relevant challenges. This year’s ABAC theme is Equity. Sustainability. Opportunity. highlights the crucial role of micro-, small-, and medium-sized enterprises (MSMEs), as well as the dynamic landscape of environment, social, and governance (ESG) investing.

In the session, Dr. Hardoon shared with attendees a couple of real-world success cases from ADI of how AI has unlocked enterprise innovations across the Aboitiz Group.

To support MSMEs, ADI developed an alternative AI-powered credit scoring and risk model called SeekCap that can reach the Philippines’ 34.3 million unbanked adult population. Now, the Aboitiz-led Union Bank of the Philippines (UnionBank) and its fintech arm UBX can offer loans to individuals and MSMEs who may not have qualified under traditional scoring methods, promoting financial inclusion that can drive national and even regional economic development. In operation, the initiative has effectively doubled the Bank’s loan approval rate.

ADI has also developed a Cement Comprehensive Strength AI Tool used by Republic Cement to improve product quality adjustments for better-managed resources and improved efficiency.

This has transformed operations from a reactive approach to a proactive, data-driven, and environmentally sustainable approach. With better quality management and operational efficiency, Republic Cement has reduced its carbon emission by approximately 35,000 tCO2e.

On May 10-11 early this year, ADI, in partnership with Aboitiz Equity Ventures and UnionBank, held the inaugural AI Summit PH, advancing discussions and development of AI applications in the country.

The APEC III session continues the trailblazing path of ADI in the AI field, fostering discussions between the public and private sectors to harness the transformative power of AI.

The rise of AI poses as many questions as it does possibilities, making it an important topic of discussion in line with the ABAC 2023 theme of Equity. Sustainability. Opportunity.

Hardoon reminded business leaders from 21 economies across the Asia Pacific that in today’s dynamics, investing in AI is like investing in education.

“AI is not a technology, it is knowledge. Just do it,” he said. — (FREEMAN)