The Philippines, Southeast Asia’s fastest-growing digital economy, is on the cusp of a major transformation driven by AI. According to a new report by London-based public policy research agency Public First, AI has the potential to eventually boost the country’s economy by a staggering P1.8 trillion (approximately US$31 billion), marking a significant 7% increase in gross value added.

The “Turbocharging Growth: The Philippines’ AI Opportunity” report, launched on Tuesday, August 12, highlights AI’s role as a key driver for the country to sustain its economic momentum.

Boosting productivity and efficiency, leading to more gains

The report offers a deeper look at how AI can benefit everyday Filipinos and address some of the nation’s most pressing challenges. The technology is likely to significantly augment the productivity of 37% of the workforce.

This could save the average worker up to three hours a week on administrative tasks, leading to potential wage increases of over 6% and boosting average worker productivity by over P110,000 annually.

The critical role of AI in driving growth across key sectors through productivity gains

The study points to Wholesale and Retail with a potential P410 billion increase (a 9% rise in gross value added or GVA), Finance and Insurance with a potential P300 billion increase (12% rise in GVA), and Public Administration and Defense with a potential P109 billion increase (9% rise in GVA).

Beyond the numbers, the report shows AI’s potential to address national challenges, such as cybersecurity and food security. AI tools could help reduce the costs of cybersecurity threats by half (P180 billion) and boost the productivity of the agricultural sector by P120 billion by 2035 through precision farming and early pest detection.

More jobs for Filipinos

As it boosts efficiency and productivity by introducing new tools for work, AI is also set to create the next wave of jobs in the Philippines.

The report suggests that AI will also create new roles in managing AI tools and performing more complex, higher-value work. This shift underscores the importance of upskilling, with the report noting that 90% of workers are interested in training to understand how AI models work.

Building an AI-ready workforce through upskilling

Google reaffirmed its commitment to helping equip Filipinos with the AI skills needed to thrive in an increasingly AI-driven economy. Over the years, the company has partnered with a range of public, private, and non-government partners—including the Department of Trade and Industry, the Department of Information and Communications Technology, and the IT and Business Process Association of the Philippines (IBPAP).

Through these collaborations, Google has made its Google Career Certificates, including the AI Essentials course, available to employees, civil servants, and stakeholders to help them build in-demand digital skills for the future of work.

“AI is more than just a buzzword; it’s a powerful tool that can help every Filipino—from students to parents to business owners—thrive in a rapidly changing world,” said Gabby Roxas, Country Marketing Manager, Google Philippines and Vietnam. “This report gives us a clear picture of what’s possible, and it’s up to all of us to ensure we have the skills needed to seize this incredible opportunity.”

Future in partnerships

Google also shared that it is providing Accenture access to Google Career Certificates to help train and upskill Accenture-supported communities with essential AI skills, as well as the families of Accenture’s employees.

As a top employer in the Philippines, Accenture has a range of initiatives to support the upskilling of Filipinos for an AI-led economy. Accenture collaborates with a vast ecosystem of partners, including the government and the broader industry through IBPAP and academic institutions to help develop a robust and diverse talent pool in the country.

“We believe that our investments in AI education and training can bridge the skills gap and promote digital inclusion, creating a more equitable future, and this commitment is a cornerstone of our corporate social responsibility efforts in the Philippines and beyond. We are proud to expand our collaboration with Google in the Philippines to help our communities thrive with AI,” said Rudy Guiao, Managing Director and Corporate Citizenship Lead of Accenture in the Philippines.

Google is committed to helping the country seize its AI opportunity through its skilling programs, empowering people with the knowledge and tools they need to build a prosperous and digitally enabled Philippines.

Read the full report here.

This is a press release. Minor edits have been made by the 8List.ph editorial team.