PH's AI spending rises, policies lag

Economic growth in Asia-Pacific stands to benefit from increased artificial intelligence (AI) and cloud computing adoption across the region, according to the Asian Development Bank (ADB).

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In a brief titled "Leveraging Artificial Intelligence and Cloud Computing to Accelerate Growth in Asia and the Pacific," published on Friday, Sept. 5, the Manila-based multilateral lender noted that spending for cloud computing in highand middle-income economies in the region, including the Philippines, amounted to $202.75 billion last year, or 0.05 percent of their combined gross domestic product (GDP), citing International Data Corp. (IDC) data.

For the same countries, AI spending in 2024 reached $73.44 billion, or 0.02 percent of their GDP.

Using IDC data, ADB researchers estimated Philippine spending on AI at $303.3 million, or 0.07 percent of the country's GDP, in 2024.

For cloud computing, an estimated $2.013 billion, or 0.43 percent of GDP, was spent in the Philippines last year.

These spending levels for AI and cloud computing in the country are equivalent to about 9.5 percent and 11.5 percent, respectively, of the national government's annual budget.

According to the ADB, "countries that increase AI and cloud spending realize important economic gains." Based on the ADB's analysis, "a one-percent increase in AI spending in Australia, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, and Vietnam yields an increase of 0.03 percent of these countries' GDP on average," the report read.