AI could boost Philippine economy by P1.8 trillion

ARTIFICIAL INTELLIGENCE (AI) technologies can potentially boost the Philippine economy by P1.8 trillion (around $31 billion), as Filipinos increasingly use AI for work and upskilling, according to a report by Google Philippines and consulting firm Public First.

- By Beatriz Marie D. Cruz Reporter

If realized, this would result in a 7% increase in gross value added (GVA), and can possibly "lift our overall global standing," Google and Public First said in its 2025 Economic Opportunity Report.

"With this new technology, it’s as if we're adding a new growth engine, a new industry to the Philippines," Gabriel Roxas, country marketing manager at Google Philippines and Vietnam, said at a news briefing on Tuesday.

The skills gained from AI can boost an average worker's productivity by P110,000 a year (about $2,000), according to the report.

Today’s AI technologies could potentially augment around 37% of workers, it added.

It could also save the average worker around three hours worth of administrative tasks in a week, freeing up their time for more productive and high-value chores, it said.

This would also boost workers’ wages by over 6%, according to the report.

To unlock the economic benefits of AI, companies must develop new workflows and invest in the necessary infrastructure to accelerate AI adoption in their operations, Mr. Roxas said.

"What's even more significant is when artificial intelligence unlocks different kinds of services, products or businesses that aren't even within the scope of what they're currently doing, which is actually likely possible, because these are new frontiers or revenue streams that won't be possible without the technology available," he added.

AI should also be ingrained in accelerating economic development and growth, which would help accelerate scientific innovation and boost workers' skills overall, he added.

Across the Philippines, AI adoption has been growing at a fast pace, driven by its young and mobile-first population.