MAP Insights

Artificial Intelligence (AI) is rapidly changing how organizations operate, innovate, and compete. As advances in AI continue to reshape industries and influence national priorities, countries around the world are focused on scaling it in ways that deliver meaningful and sustainable value.

 

For the Philippines, this presents an opportunity to strengthen competitiveness, enhance productivity, and position itself within an increasingly AI-driven global landscape. The Department of Economy, Planning and Development (DEPDev) has noted that AI is expected to contribute up to 18 percent of ASEAN’s gross domestic product by 2030, underscoring its potential to drive growth and economic transformation across the region. As the Philippines expands its digital economy, efforts are underway to strengthen workforce capabilities through upskilling and reskilling initiatives while fostering closer collaboration among the government, the private sector, and the academe.

 

AI Governance and Public Policy

 

As AI adoption accelerates, governance is becoming just as important as innovation. Recognizing the need to balance technological advancement with accountability, the Philippine government is strengthening its policy framework for responsible AI development.

 

In April 2026, DEPDev announced that 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.

 

These broader governance efforts are also being reinforced through legislative and institutional initiatives. 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.

 

How AI is Transforming the Private Sector

 

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 percent increase from the previous year, while revenues rose by 6.9 percent to US$33.9 Billion (B).

 

In addition, 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 article by the United Nations Development Programme, it was highlighted that by 2030, it is expected that AI adoption across key industries in the Philippines could unlock an additional US$50.7B in economic value highlighting the significant opportunity AI presents for businesses seeking to enhance productivity, improve decision-making, and strengthen competitiveness.

 

Realizing this potential, however, requires organizations to strengthen the foundations that support AI at scale. As intelligent systems become more deeply embedded in business processes, the ability to govern, secure, and manage data effectively is becoming just as important as the technology itself.

 

AI in Data Governance and Cybersecurity

 

As AI becomes more deeply embedded across organizational operations, the volume of data being generated, processed, and shared continues to grow, exposing organizations to higher data governance, cybersecurity, and privacy-related risks.

 

Recent cyberattack incidents 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. Given this, cybersecurity experts warn that while the methods used by threat actors may not be entirely new, AI is significantly accelerating activities, such as vulnerability discovery, attack path evaluation, and social engineering, shortening the time between identifying a weakness and attempting to exploit it.

 

In response, both 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 are just some of the conversations that will take place at the 2nd MAP x KPMG Technology Summit on 30 June 2026, 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.

 

[The author is Co-Vice Chair of the Technology Committee of the Management Association of the Philippines (MAP). He is Partner and Head of Technology Consulting of R. G. Manabat & Co. (KPMG in the Philippines). Feedback at <map@map.org.ph> and <jsmanrique@kpmg.com>].