Artificial intelligence could generate as much as $44.5 billion (₱2.6 trillion) in economic value for the Philippines, but experts say this opportunity will depend on whether the country can strengthen digital infrastructure, develop AI talent, and modernize government systems.
The issue was discussed during the GovMedia Summit 2026 held on March 17 at Makati Shangri-La, where policymakers and technology leaders examined how digital transformation could reshape the Philippine economy and public sector services.
Speakers emphasized that the Philippines already has a strong foundation for digital transformation, but structural gaps in infrastructure, skills, and governance must be addressed before the country can fully capture the economic benefits of artificial intelligence.
AI Could Unlock Major Economic Value
During the summit, Eucel Maximo, Partner at YCP Holdings (Global) Limited, said widespread adoption of AI across government and key industries could create billions of dollars in economic value for the country.
The Philippines has a unique advantage in this transformation because of its large and digitally active population. According to Maximo, around 97.5 million Filipinos are internet users who spend an average of eight to nine hours online each day.
“Filipinos are digital citizens,” Maximo said.
This level of digital engagement creates a strong foundation for AI-powered services in areas such as healthcare, agriculture, procurement, disaster management, and public administration.
AI systems could significantly improve the efficiency of government services. For example, AI tools can analyze thousands of documents simultaneously, identify inconsistencies, and reduce processing times by as much as 90%.
In citizen services, AI-powered systems could provide 24/7 government assistance, eliminating delays caused by limited office hours.
The technology could also improve transparency in government spending by monitoring procurement systems and detecting potential fraud.
Digital Infrastructure Remains a Key Constraint
Despite the potential benefits, Maximo noted that digital infrastructure remains the foundation for any successful AI transformation.
Singapore’s policies provide a useful benchmark. The country has deployed 10-gigabit-per-second fiber-to-home networks and provides citizens with six months of paid access to AI training platforms.
In comparison, internet speeds in the Philippines currently range between 35 Mbps and 100 Mbps.
“At the base layer of everything would be the infrastructure,” Maximo said. “The more, the faster our internet is, the more things we can do.”
He also suggested that Philippine telecommunications providers could improve network efficiency through shared infrastructure agreements, instead of operating in isolated networks.
AI Adoption Is Rising—but Many Projects Remain in Pilot Stage
AI adoption is already growing across Filipino organizations.
According to Maximo, 92% of Philippine organizations have begun adopting AI technologies, although 65% remain in proof-of-concept stages.
This suggests that many initiatives are still experimental rather than fully integrated into core operations.
One of the biggest barriers to scaling AI, he said, is the shortage of skilled professionals capable of implementing and managing AI systems.
“The number one barrier is skills and also having the right team to help with the transformation,” Maximo said.
To address this challenge, he proposed a “10-20-70 framework” for AI implementation:
- 70% focus on people and processes
- 20% on technology systems
- 10% on algorithms
The framework highlights that digital transformation is not primarily a technology problem but a management and organizational challenge.
Government Must Align Skills and Digital Strategy
Another major issue raised at the summit is the need to align workforce development with the demands of a digital economy.
Maximo cited Singapore’s decision to merge workforce development and employment agencies as a model that helps ensure training programs lead directly to job opportunities.
In the Philippines, skills training initiatives remain fragmented across industries, which slows the development of AI-ready talent.
Governments must also carefully manage cybersecurity risks and digital identity systems as they expand digital services.
Maximo pointed to Singapore’s decision to restrict the use of national ID numbers for banking authentication due to fraud risks, highlighting the importance of careful policy design as the Philippine national ID system expands.
AI Is Already Entering Philippine Classrooms
Artificial intelligence is also beginning to reshape education.
At the same summit, Dexter Galban, Assistant Secretary for Strategic Management at the Department of Education (DepEd), discussed the government’s Project AGAP.AI, a national initiative to integrate AI into the Philippine education system.
Launched in January, the program aims to reach 1 million students, 300,000 teachers, and 250,000 parents through AI training, curriculum development, and classroom tools.
The initiative follows a three-part strategy:
- AI in Education to improve school operations
- Education on AI to teach students and teachers about artificial intelligence
- AI for Education systems to improve decision-making and efficiency
The program is supported by partners including Google.org, MIT RAISE, the ASEAN Foundation, Day of AI, UNILAB Foundation, and UP NISMED.
DepEd has also introduced AI-powered tools to improve school operations. One system called Sigla can measure students’ height, weight, and body mass index with 98% to 99% accuracy, helping schools improve feeding programs.
From Digitisation to Transformation
Ultimately, speakers at the GovMedia Summit 2026 at Makati Shangri-La said the Philippines now faces a critical strategic choice.
Government agencies can simply digitize existing processes, optimize current bureaucratic systems, or fully integrate artificial intelligence to transform how public services operate.
The economic potential is clear, but unlocking it will require investments in infrastructure, workforce skills, and governance frameworks that support innovation.
“Scaling imperatives would be to embed AI inside core systems, build a talent pipeline, institutionalize AI governance, and measure impact,” Maximo said.
If these conditions are met, artificial intelligence could become one of the most powerful drivers of economic growth in the Philippines over the coming decade.
