By Beatriz Marie D. Cruz, Senior Reporter
THE PHILIPPINES is lagging its regional peers in generative artificial intelligence (GenAI) adoption, while also having the lowest internet penetration rate, according to a report by Google, Bain & Co., and Singapore government investment company Temasek.
In its e-Conomy SEA report, they found that 53% of the Philippine working population uses standalone GenAI platforms, the lowest rate among the six major Southeast Asian economies.
The corresponding usage rates are as follows: Indonesia (54%), Thailand (63%), Vietnam (65%), Malaysia (68%), and Singapore (70%). The Southeast Asian average is 58%.
The Philippine internet penetration rate is 70%, lagging the over 90% adoption rates for Malaysia, Singapore and Thailand, and also those of Vietnam (87%) and Indonesia (81%).
AI for consumer use is stronger in Southeast Asia, especially in Thailand, Vietnam, Indonesia and the Philippines. In contrast, enterprise use constitutes the bulk of usage for more mature markets like Singapore and Malaysia, the report found.
In the Philippines, consumer activity accounts for 80% to 85% of AI adoption, with enterprises accounting for the remaining 15% to 20%.
The regional trust rating for the technology rose to 62%, the report, citing increased usage and familiarity, better output, and the technology’s track record.
It also noted that 69% of SEA-6 consumers use AI to compare product options, with 93% trusting AI-driven recommendations.
It described adoption patterns as “consumer-led, mobile-first,” with substantial room for both consumers and enterprises to deepen their use of AI.
Southeast Asian users are expected to use AI by up to 60 times more by 2030, especially for more complex tasks, the report projected.
The region’s digital payments are expected to hit $3.64 trillion by 2035 from $1.65 trillion this year, driven by account-to-account transfers and e-wallets, the report noted.
“Momentum is concentrated across Indonesia, the Philippines, Thailand, and Vietnam, where mobile-first youth and rising incomes are lifting online spend,” the report said.
Southeast Asia’s digital economy is expected to grow 17% by gross merchandise value this year despite the threat of geopolitical and macroeconomic uncertainties, the e-Conomy report forecast.
“AI will continue its role as a key contributor to SEA’s trajectory in the long term, as growth dynamics are now firmly rooted in the value AI brings to interactions between businesses and consumers,” it added.
John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, said the low GenAI adoption reflects gaps in digital infrastructure.
Issues affecting adoption rates include affordability, accessibility, and digital literacy, according to Ronald B. Gustilo, national campaigner for Digital Pinoys.
“While many AI platforms offer free versions, more advanced features often require paid subscriptions,” he said via Viber.
Mr. Gustilo also cited the need to address issues like AI distrust and literacy.
“Some people associate AI primarily with cheating, misinformation, deepfakes, job displacement, or the replacement of human creativity. These concerns should not be dismissed, but addressed through education, responsible use, transparency, and stronger safeguards against abuse,” he said.