Advances in AI Adoption and Data-Driven Capabilities Accelerate in the Philippines, but Talent Gaps Threaten Momentum, Aon Study Finds

MANILA, PHILIPPINES - Media OutReach Newswire - 1 July 2026 - Aon plc (NYSE: AON), a leading global professional services firm, today released findings for the Philippines from its inaugural Human Capital Trends Study, highlighting a workforce at a key moment of change.

Organisations in the Philippines are accelerating the adoption of artificial intelligence (AI) and investing in data-driven capabilities, supported by strong participation in upskilling programmes. However, limited availability of AI talent, underdeveloped pay transparency practices and a widening gap between employee expectations and workplace experience continue to shape workforce outcomes.

AI Adoption Accelerates

According to the study, the Philippines is keeping pace with global AI adoption with 72 percent of organisations having already deployed AI or piloting programmes, signalling continued progress in how organisations are adopting and applying AI. This progress is supported by continued investment in workforce development, with 94 percent of organisations expecting AI to create new roles and reshape skill requirements.

However, only 17 percent of organisations say they can recruit and retain enough AI-skilled talent, highlighting a gap between AI ambition and workforce readiness.

"Organisations in the Philippines are taking meaningful steps to prepare their workforce for the future through AI adoption and skills investment," said Rahul Chawla, partner and head of Talent Solutions in Southeast Asia for Aon. "As demand for talent continues to grow, organisations that align workforce planning, job architecture and pay strategies with AI adoption will be better positioned to translate innovation into growth."

Data Maturity Provides a Foundation, but Gaps Remain

One of the clearest signals in the Philippines is the strength of workforce data, supported by benchmarking sources such as Aon's Radford McLagan Database. More than half of organisations (53 percent) report high levels of HR data maturity, indicating a strong foundation for more informed workforce decisions.

This capability is not yet fully translating into workforce outcomes. Only 20 percent of organisations have a clearly defined and well-understood employee value proposition, limiting their ability to connect workforce insight with engagement and retention.

Employee Expectations and Benefits Gap

While organisations are confident in their people strategies, there is an opportunity to further strengthen alignment with employee experience. Seventy-seven percent of organisations believe their wellbeing strategies meet workforce needs, yet only 25 percent report strong and visible leadership commitment.

A similar shortfall is evident in benefits. While 71 percent of employees value customised benefits, only 9 percent report receiving them, highlighting an opportunity to better align employer offerings with employee expectations.

This imbalance extends to compensation practices. Pay transparency remains underdeveloped, with only 13 percent of organisations reporting mature practices, and 55 percent have not benchmarked compensation recently, which may influence their ability to compete effectively for talent as demand continues to grow.

"Organisations are making meaningful investments in benefits and employee experience, with an opportunity to further strengthen clarity, personalisation and communication," said Cris Rosenthal, strategic advisory lead for Human Capital capabilities in the Philippines for Aon. "Closing the gap between employer intent and employee experience will require more integrated, data-driven and personalised approaches to health and benefits which will be key to improving engagement and workforce performance."

Aligning Investment with Outcomes

The findings reflect continued progress in AI adoption, building workforce capability and data maturity. At the same time, rising employee expectations are placing greater pressure on organisations to translate these investments into measurable outcomes. Future growth will depend less on the pace of investment and more on the effectiveness of execution.

The findings highlight three priorities for organisations in the Philippines to succeed:

• Converting strong data maturity into actionable workforce and talent strategies
• Strengthening compensation transparency and benchmarking to compete for scarce skills
• Aligning benefits design with employee experience through personalisation and clearer communication

As the Philippines continues to evolve as a key talent and services hub in Asia, aligning technology investment with workforce strategy will be key to sustaining growth and strengthening 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 APAC across markets including Australia, China, Hong Kong, India, Malaysia, the Philippines and Singapore. More information about the report is available here.
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About Aon

Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Through actionable analytic insight, globally integrated Risk Capital and Human Capital expertise, and locally relevant solutions, our colleagues provide clients in over 120 countries with the clarity and confidence to make better risk and people decisions that help protect and grow their businesses.

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