Inside Philippines: AI startups transforming industries

The Philippines is making significant strides in artificial intelligence, with applications spanning agriculture, urban planning, disaster resilience, health care, finance, and education.

The government has laid the groundwork for AI-driven growth through initiatives such as the National AI Strategy Roadmap and the establishment of the Center for Artificial Intelligence Research or CAIR.

These efforts position the country as a rising AI hub in ASEAN, ensuring that AI is adopted responsibly while driving economic and societal transformation.

From optimising farming techniques to enhancing financial inclusion, AI is reshaping industries and addressing pressing challenges. However, like any technological revolution, AI adoption in the Philippines comes with hurdles that must be overcome to unlock its full potential.

The economic impact of AI

AI adoption is poised to generate PhP2.8 trillion (approx. US$49 billion) in economic benefits for Philippine businesses by 2030. Bridging the digital skills gap through AI-related training could add PhP809 billion (US$14 billion) to the country’s annual GDP.

The National Economic and Development Authority, for its part, estimates that embracing AI-powered solutions could yield an annual gain of PhP2.6 trillion (US$45.3 billion).

These figures highlight the transformative potential of AI, reinforcing the importance of fostering a supportive AI ecosystem to accelerate digital economic growth.

Challenges to AI adoption

Despite its promise, AI adoption in the Philippines faces significant roadblocks:

Limited awareness and scepticism: Many businesses and policymakers lack knowledge about AI’s capabilities and risks, leading to hesitation in adoption.

Job displacement concerns: Fear of automation-driven job losses, particularly in low-skilled industries, fuels resistance. This underscores the need for robust reskilling initiatives.

Shortage of skilled professionals: The demand for AI talent, including data scientists and machine learning engineers, outpaces supply. Educational and training programmes remain insufficient.

Inadequate digital infrastructure: Limited access to high-speed internet, computing power, and reliable data storage hampers AI implementation, particularly in rural areas.

Funding constraints: Insufficient investment in AI research and development limits the country’s ability to compete globally.

Regulatory gaps: The absence of a comprehensive AI framework raises concerns about ethical use, data privacy, and security. Algorithmic bias and data misuse remain critical challenges requiring robust governance measures.

Government initiatives to promote AI adoption

The Philippine government has taken proactive steps to address these challenges and accelerate AI adoption:

National AI Strategy Roadmap 2.0 (NAISR 2.0): Launched in July 2024, this updated strategy incorporates emerging technologies such as generative AI and focuses on ethics, governance, and responsible AI deployment.

Center for AI Research (CAIR): A collaborative hub for AI research, bringing together academia, government agencies, and private sector stakeholders to drive innovation.

Legislative support: Laws such as the Philippine Innovation Act (Republic Act No. 11293) and the Philippine Innovative Startup Act (Republic Act No. 11337) provide incentives for AI-driven startups and innovation-focused enterprises.

Foreign investment attraction: President Ferdinand Marcos Jr. has actively sought partnerships with global technology firms, positioning the Philippines as a centre of excellence for AI in the region.

The Philippines is making significant strides in artificial intelligence, with applications spanning agriculture, urban planning, disaster resilience, health care, finance, and education.

The government has laid the groundwork for AI-driven growth through initiatives such as the National AI Strategy Roadmap and the establishment of the Center for Artificial Intelligence Research or CAIR.

These efforts position the country as a rising AI hub in ASEAN, ensuring that AI is adopted responsibly while driving economic and societal transformation.

From optimising farming techniques to enhancing financial inclusion, AI is reshaping industries and addressing pressing challenges. However, like any technological revolution, AI adoption in the Philippines comes with hurdles that must be overcome to unlock its full potential.

AI startups driving innovation

1) Fintech and financial services

Plentina focuses on AI-powered alternative credit scoring to provide financing options to underserved Filipinos.

Acudeen Technologies uses AI to offer financing solutions for small and medium-sized enterprises.

FinScore, also specialising in credit scoring, uses telco data to assess the creditworthiness of the unbanked population.

2) Health care

Libera Technologies uses AI to analyse medical images and assists doctors with faster and more accurate diagnoses.

MedCloud Philippines provides an AI-powered telemedicine platform to connect patients with doctors remotely, with the aim of improving healthcare access in remote areas.

3) Mobility and logistics

Mober Technologies optimises public transportation routes using AI to reduce congestion and commuter wait times in urban areas.

Expedock is an AI-based outsourcing service provider for logistics and freight management, headquartered in Silicon Valley but founded in the Philippines.

4) Social impact

Komunidad leverages natural language processing to analyse social media data for identifying poverty hotspots or disaster relief needs. The AI solution aids NGOs and government agencies.

5) Customer engagement

Rumarocket offers AI chatbots for personalised customer support and targeted marketing messages.

Senti AI specialises in NLP and sentiment analysis to improve customer experiences through virtual assistants and chatbots.

6) Data analytics

Cirrolytix Research Services provides AI-powered data analytics solutions to help businesses extract actionable insights from their data.

7) Insurance technology

Flipside AI automates insurance processes such as underwriting and claims handling through AI to make insurance more accessible and affordable.

Overcoming barriers to AI adoption

The Philippines is advancing on its AI journey through investments in education and infrastructure, and the establishment of regulatory frameworks and commissions.

Overcoming adoption barriers will require collaboration between government, businesses, and academia to ensure inclusive and sustainable AI growth.

With a budding startup ecosystem and government-led initiatives, the country is set to harness AI’s full potential. The challenge is in ensuring AI-driven progress translates into equitable economic benefits that bridge the digital divide while fostering a competitive edge in the global AI economy.