Philippines Artificial Intelligence Market Analysis, Size, and Forecast by Type, Deployment Model, Industry, and Organization Size: 2019-2033

Philippines Artificial Intelligence Market Outlook

With tech spending in the Philippines projected to rise by 9.7% in 2025—outpacing regional peers like Thailand and Malaysia—the country is rapidly emerging as a Southeast Asian AI powerhouse. AI adoption is being prioritized not only as a growth enabler but also as a frontline defense against cybersecurity threats, especially as 77% of enterprises anticipate a disruptive cyber incident within the next 12 to 24 months, according to David Gomes, Manager – IT. This makes the Philippines the second-fastest growing digital economy in the region, with its unique blend of aggressive digital transformation policies, regulatory urgency, and public-private collaboration fueling artificial intelligence (AI) integration across sectors.

A compelling indicator of this AI momentum is the mainstream adoption of machine learning in cybersecurity operations. Over 95% of Filipino enterprises are leveraging AI to enhance incident response, automate threat detection, and reduce breach response time—a move that has become essential in light of the over 4.1 million brute-force cyberattacks reported in 2024. These sophisticated attacks are often driven by AI-enabled password-cracking algorithms that exploit remote work vulnerabilities. Such developments are pushing businesses to implement AI-powered security orchestration, endpoint protection, and digital identity verification solutions at scale.

Financial technology is also a frontline benefactor of AI evolution in the Philippines. A standout example is the strategic collaboration between the Philippine Statistics Authority (PSA) and GCash, the country’s leading mobile wallet, which now allows users to register for a National ID and open an e-wallet account simultaneously. Biometrics from Zoloz are employed to perform Know Your Customer (KYC) checks—illustrating how AI streamlines both compliance and user onboarding. Over 56% of GCash users have verified their accounts using their National ID, accelerating the Philippines’ mission to become a financially inclusive digital economy.

Executive insights indicate a broader national commitment to ethical and inclusive AI development. Senator Grace Poe has raised critical concerns about algorithmic misuse, impersonation fraud, and deepfakes, urging a careful legislative approach that prevents over-regulation while fostering innovation. Her stance underscores the political maturity in Philippine AI policy discourse—a balance of innovation facilitation and rights protection. Similarly, Representative Robert Ace Barbers has filed House Bill 7396 to create the Artificial Intelligence Development Authority (AIDA), a centralized AI watchdog tasked with ensuring ethical deployment, skill development, and regulatory compliance. This legislative proposal is being shaped in collaboration with institutions like the Department of Science and Technology (DOST) and the University of the Philippines.

The Philippine AI strategy is also beginning to materialize through multi-sector initiatives. The Department of Information and Communications Technology (DICT) is enforcing unified standards for ICT planning to eliminate data silos and improve interoperability. Meanwhile, companies like Mynt (GCash’s parent), Voyager Innovations, and Sprout Solutions are actively investing in AI to enhance personalization, automate HR workflows, and secure user data. This innovation is being further supported by venture capital flows into AI startups—many focusing on AI-as-a-service platforms, predictive analytics, and fraud detection. According to the author, these AI-centric startups are expected to contribute at least 0.85% to the Philippines’ GDP by 2026, with growth largely driven by the rising demand for identity management, financial security, and real-time analytics in enterprise settings.

While threats remain, particularly with AI-powered cybercrime on the rise, the urgency is being met with actionable reforms and resilient infrastructure planning. HID Global, for instance, has advocated for a national AI-powered identity protection framework—signaling the need for AI not just as a business enabler but as a societal safeguard. The combination of public policy, corporate investment, and digital upskilling is creating a robust environment where AI can thrive responsibly and competitively.

As the Philippines continues to forge its path in artificial intelligence, the integration of secure digital identities, regulated AI ethics, and sector-specific implementations positions it not just as a technology adopter—but as a regional thought leader in AI governance. For investors, enterprise strategists, and policy stakeholders, this signals not just opportunity—but a model of how emerging economies can lead with agility, accountability, and impact.

Authors: David Gomes (Manager – IT)

*Research Methodology: This report is based on DataCube’s proprietary 3-stage forecasting model, combining primary research, secondary data triangulation, and expert validation. [Learn more]

Philippines Artificial Intelligence Market Scope