Development of Artificial Intelligence to Become Key Contributor in Philippines’ Digital Economy

As artificial intelligence continues its rise to prominence within the country, the industry is expected to contribute $92 billion to the Philippines’ digital economy by 2030, according to the 2021 Startup Genome report. “That’s 12% of our GDP by 2030,” explained Trade and Industry Undersecretary Rafaelita Aldaba, who noted the Philippines was considered within the top 20 global ecosystems in affordable talent under the study.

Furthermore, the country’s digital economy is projected to achieve $25 billion in revenues by 2025, which is a significant leap from the $17 billion recorded in 2021. The continued digital transformation of the Philippines is driven by a young tech-savvy population alongside a robust startup ecosystem — comprised of over 700 startups, more than 40 venture capitalists, over 50 angel investors, 35 incubators and accelerators, and more than 200 co-working spaces.

“The acceleration of digital transformation paved the way for the growth of the digital economy in the Philippines,” Aldaba furthered. This booming ecosystem likewise played a key role in providing the government with support and solutions that are geared to address the challenges brought about by the global pandemic.

The Department of Trade and Industry (DTI), acknowledging the relevance of this industry, has also extended more assistance for the digitalization of enterprises through its Industry 4.0 and Digital Transformation services. “Hence, we continue to build and support the creation of a robust startup ecosystem as this would serve as the muscle of our digital transformation,” added Aldaba.

The Philippines remains a consistent innovation achiever as reported by the Global Innovation Index, which monitors innovation performance. In 2021, the country only dropped down to the 51st spot compared to its previous position at 50th rank in 2020 despite the circumstances of the prolonged global pandemic.

Source: Manila Bulletin