Introduction
Philippine micro, small, and medium enterprises (MSMEs), which account for approximately 99.5% of all businesses and about 60% of total employment, are widely regarded as the backbone of the national economy (Philippine Statistics Authority [PSA], cited in PIDS, 2024). Despite this central role, MSMEs have been slow to adopt advanced digital technologies, particularly Artificial Intelligence (AI). As a result, most MSMEs continue to adopt a “wait-and-see” approach, delaying AI adoption until clearer benefits and lower risks emerge.

In this study titled, “The Wait and See Gamble: AI Readiness, Adoption Barriers, and HR Practices in Philippine MSMEs,” “wait-and-see” refers to a cautious posture toward innovation – whether deliberate strategic deferral, rational risk avoidance under uncertainty, or simply passive inaction due to capacity constraints – wherein MSME decision-makers delay adopting new technologies until their value is clearly demonstrated.

By participating in this survey, your insights will help assess AI readiness and usage, identify key barriers hindering adoption, uncover perceived competitive impacts of non-adoption, and inform how these factors collectively shape MSMEs’ trajectories towards eventual AI integration in Philippine HR.
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