AI could add P1.8T to PH economy

AI could add P1.8T to PH economy
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ARTIFICIAL intelligence (AI) could inject as much as P1.8 trillion (about US$31 billion) into the Philippine economy, driving a seven percent boost in gross value added (GVA) and positioning the country to sustain its growth as Southeast Asia’s fastest-rising digital market, according to a new report by London-based public policy research agency Public First.

Launched on Aug. 12, 2025, the “Turbocharging Growth: The Philippines’ AI Opportunity” study highlights AI’s potential to transform productivity and address national challenges, from streamlining business operations to strengthening food and cyber security.

The report estimates that AI could enhance the productivity of 37 percent of the workforce, saving employees up to three hours a week on administrative tasks. This efficiency could translate to annual productivity gains worth over P110,000 per worker and potential wage increases exceeding 6 percent.

Sector-specific gains could also be substantial: wholesale and retail could add P410 billion (nine percent GVA increase), finance and insurance P300 billion (12 percent) and public administration and defense P109 billion (nine percent). AI adoption in agriculture could generate P120 billion in added productivity by 2035 through precision farming and early pest detection, while cybersecurity costs could be slashed by half—around P180 billion in savings.

Beyond economic figures, the technology is already shaping Filipino life. Around half of the population uses AI tools weekly, with nearly half expressing optimism about its national and personal impact.

Google Philippines Country Marketing manager Gabby Roxas said the findings underscore the need to prepare Filipinos for an AI-driven future. “This is about more than technology — it’s about giving people the skills and confidence to thrive in a rapidly changing world,” he said, noting that Google has partnered with government agencies and industry groups to make AI and digital skills training more widely accessible.

Through programs like Google Career Certificates and the AI Essentials course, the tech giant has reached employees, civil servants, and community stakeholders. Google also announced an expanded partnership with Accenture, which will provide AI training to Accenture-supported communities and the families of its employees.

Accenture Philippines managing director and Corporate Citizenship lead Rudy Guiao said the collaboration aims to “bridge the skills gap and promote digital inclusion,” stressing that equipping communities with AI skills is key to innovation and equitable growth.

Public First’s findings come as 90 percent of Filipino workers express interest in AI-related training. With the right upskilling programs, the report concludes, AI could power the next wave of economic and social progress in the country. / KOC

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