Growing the Philippines’ AI opportunity with Google

Growing the Philippines’ AI opportunity with Google

The Philippines is on the cusp of a transformative economic journey. The recovery and reform efforts set out in the Philippine Development Plan 2023-2028 (PDP) pave the way for the nation’s transition from a lower middle-income country[1] (with a gross national income per capita of PHP 219,700 or USD 3,950) in 2023, to an upper middle-income country over the coming years.[2] Central to this transition is the pivotal role of the digital economy.

Artificial Intelligence (AI) offers a way for the Philippines to overcome current economic challenges by enhancing productivity and unleashing human potential. Our study finds that there is a sizeable AI opportunity for the Philippines, with PHP 2.8 trillion of economic benefits (USD 50.7 billion) expected for businesses in the Philippines in 2030, if AI-powered products and solutions are adopted. AI’s impact extends far and wide, with professional services (including IT-BPM, a key sector for the Philippines) expected to benefit significantly – alongside retail, manufacturing, and financial services.

Investing in digital skills training is also essential to help employees in the Philippines make the most of AI-enabled tools. Employees with these skills can improve productivity, assisted by AI automation, helping the country’s workforce to remain competitive internationally. In fact, our study finds that PHP 809 billion (USD 14.5 billion) of annual GDP in the Philippines can be added in 2030 by narrowing the digital skills gap through digital skills training.

Creating a stronger Philippines with Google

Technology companies are well-positioned to drive innovation and help the developing digital economy in the Philippines to flourish. Google has been helping to create a stronger Philippines through its AI-powered products and solutions, educational initiatives, and technology know-how.

Google supports businesses in the Philippines by enhancing their productivity through automating tasks and improving work efficiency, expanding their online presence to unlock new economic opportunities, and boosting customer service. In 2023, Google Search, Google Ads, Google AdSense, Google Play, Google Cloud, and YouTube helped provide PHP 595 billion (USD 10.7 billion) of economic activity for businesses. Google also supported 278,300 jobs by helping businesses expand through their use of Google products, with an additional 115,200 jobs supported by the Android app economy.

Additionally, Google’s user-friendly AI-powered products continue to improve Filipinos’ access to educational information and content. This has helped lift the skills of the Philippines workforce, better equipping them to harness the full potential of digital technologies. Our recent survey found that 73% of Filipinos highlighted Google Search’s ability to facilitate their research and learning as a key benefit. Households in the Philippines also experience substantial benefits from Google’s AI-powered offerings, with Google products providing PHP 874 billion (USD 15.7 billion) of economic benefits for households in 2023.

Fostering a supportive and conducive AI landscape is imperative. Now is the time to unlock the full potential of the digital economy and create a more prosperous future for the Philippines. With its AI expertise and commitment to skills development, Google is already contributing to the Philippines’ digital future and working to support the government, businesses, communities, and wider society.

Download the report here

Report methodology

[1] Upper middle-income countries are defined as countries with a gross national income per capita range of PHP 248,400 to PHP 770,065 (USD 4,466 to USD 13,845).
[2] Sources include: National Economic and Development Authority (n.d.), Philippine Development Plan 2023-2028. Retrieved from https://pdp.neda.gov.ph/philippine-development-plan-2023-2028; and World Bank (n.d.), “Philippines: Overview”. Retrieved from https://www.worldbank.org/en/country/philippines/overview

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