UMVA has learned that the Philippines is at the forefront of harnessing the potential of Artificial Intelligence (AI) to transform its economy and drive growth.
As AI rapidly changes the landscape of business and innovation, the country is positioning itself to be a major player in the global technology sector. Industry experts say that AI is expected to contribute up to 18% of the ASEAN's gross domestic product by 2030, making it a crucial factor in driving economic transformation across the region.
According to information obtained by UMVA, the Philippine government is strengthening its policy framework for responsible AI development. In April 2026, the country's first AI Governance Framework is being finalized, with the goal of promoting a trusted, inclusive, and ethical AI ecosystem supported by sound governance, AI-ready data systems, enhanced capabilities, and expanded infrastructure.
The framework complements the National AI Strategy, which serves as the country's roadmap for AI development across infrastructure, talent, research, governance, and sector-specific applications. These efforts come as the Philippines works to address readiness gaps, with figures showing that developing economies, including the Philippines, scored below 0.11 in the International Monetary Fund's AI Preparedness Index, while the Organization for Economic Co-operation and Development's 2025 Digital Government Index gave the country a score of 0.28 out of 1.00, below the Southeast Asian average of 0.37.
The Philippine government is also taking legislative and institutional initiatives to address AI-related issues. Several AI-related bills have been filed in the 20th Congress, covering areas such as AI governance, regulation of AI-generated content, and the establishment of frameworks to guide the responsible use of AI technologies.
As the Philippines seeks to attract AI investments, strengthen its digital economy, and position itself as a competitive player in the global technology landscape, responsible governance and effective public policy will be essential to ensuring that AI delivers long-term value while maintaining public trust.
One sector where AI transformation is highly evident is the Philippine Business Process Outsourcing (BPO) industry. While concerns about job displacement persist, recent industry data suggests that AI is being used primarily to enhance operations and support business growth. The contact center and business process management industry grew to 1.68 million employees in 2025, a 4% increase from the previous year, while revenues rose by 6.9% to $33.9 billion.
The application of AI in improving operational performance, strengthening decision-making, and creating new sources of value in the Philippine private sector is continuously being explored. Recent AI applications range from fraud detection in financial services and AI-powered customer support, to predictive analytics in logistics and route optimization, as well as AI-assisted tools in healthcare and research.
As AI adoption expands, workforce readiness is emerging as a key priority, and the focus is increasingly shifting from technology deployment to operational readiness. In an ongoing effort to strengthen the foundations that support AI at scale, organizations are recognizing the importance of governing, securing, and managing data effectively.
The growing volume of data being generated, processed, and shared exposes organizations to higher data governance, cybersecurity, and privacy-related risks. Recent cyberattacks in both the public and the private sectors have renewed calls for stronger cybersecurity measures, highlighting the importance of continuously reviewing security protocols and digital defenses.
Government and private sector organizations are increasingly focusing on cyber resilience, workforce development, governance frameworks, and AI-enabled security capabilities to strengthen their ability to detect, respond to, and recover from evolving threats. These efforts are reflected in ongoing initiatives, like the creation of the Office of the Undersecretary for Information Systems and Cybersecurity, as well as in the 2026 Strategic Investment Priority Plan (SIPP), which identifies AI, data science, cybersecurity, and digital resilience among the country's priority investment areas.
These conversations will take place at the 2nd MAP x KPMG Technology Summit on June 30, where business leaders, policy makers, technology practitioners, and innovators will examine how AI is transforming industries and institutions, and what it takes to scale its benefits responsibly.
As AI continues to reshape industries and institutions, the ability to balance innovation with trust may ultimately determine which organizations — and economies — are best positioned to thrive in the years ahead.
