Authors - Siddharth Joshi, Deepti Kiran, Dev Kumar Yadav, Harshit Sinha, Abhishek Kukreti Abstract - Artificial Intelligence (AI), as a technology, has the potential to change the manner in which organizations are run in the world. However, small and medium-sized enterprises (SMEs) in the Philippines have unique limitations in the use of AI in running the business. The study aims to explore the perceptions of SME managers in the Philippines on the use of AI, with particular reference to the limitations and facilitators in the use of the technology in the business environment. In this study, the researcher interviewed five SME managers from different sectors, including retail, manufacturing, and service sectors. The researcher used thematic analysis to identify the commonalities in the decisions made by the SME managers on the use of AI in the business environment. The study revealed the perceptions of the SME managers on the use of AI in the business environment in the Philippines, with the limitations and facilitators in the use of the technology in the business environment. The study provides practical insights that can guide strategies aimed at strengthening AI readiness and responsible adoption among SMEs in the Philippines.