Philippines generative AI adoption trails Southeast Asia peers as internet access lags

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PH generative AI adoption gap

Highlights

The Philippines ranks last in Southeast Asia for generative AI usage among workers at 53%, below the regional average of 58% and Singapore's 70%.
Internet penetration in the Philippines stands at 70%, trailing behind Malaysia, Singapore, and Thailand (all above 90%), limiting broader AI adoption.
Southeast Asia's digital economy is forecast to grow 17% by gross merchandise value in 2024, with digital payments reaching $3.64 trillion by 2035 from $1.65 trillion in 2024.

Regional study highlights adoption and access gaps

As reported by BusinessWorld, citing Google, Bain & Co., and Temasek in their e-Conomy SEA report, the Philippines ranks last among the six major Southeast Asian economies in standalone generative AI usage by the working population. The study says 53% of Filipino workers use GenAI platforms, below the regional average of 58% and behind Indonesia at 54%, Thailand at 63%, Vietnam at 65%, Malaysia at 68%, and Singapore at 70%.

The report also says the Philippines has a 70% internet penetration rate, trailing Malaysia, Singapore and Thailand, each with rates above 90%, as well as Vietnam at 87% and Indonesia at 81%. It identifies this connectivity gap as a constraint on wider AI adoption as the technology becomes more embedded in daily work and consumer activity.

Across Southeast Asia, AI use remains strongest on the consumer side in Thailand, Vietnam, Indonesia and the Philippines, while enterprise demand accounts for a larger share in more mature markets such as Singapore and Malaysia. In the Philippines, consumer activity makes up 80% to 85% of AI adoption, leaving enterprises with the remaining 15% to 20%.

Consumer-led growth shapes regional digital economy

The report says regional trust in AI has risen to 62%, supported by heavier usage, greater familiarity, improving output and the technology’s growing track record. It also notes that 69% of consumers across the SEA-6 use AI to compare product options, while 93% trust AI-driven recommendations.

Adoption patterns in the region are described as consumer-led and mobile-first, with substantial room for both households and companies to deepen usage. The study projects Southeast Asian users will use AI up to 60 times more by 2030, especially for more complex tasks.

The broader digital economy outlook remains strong despite geopolitical and macroeconomic uncertainty. The report forecasts Southeast Asia’s digital economy will grow 17% by gross merchandise value this year, while digital payments are expected to reach $3.64 trillion by 2035 from $1.65 trillion this year, driven by account-to-account transfers and e-wallets.

John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, says the country’s low GenAI adoption reflects gaps in digital infrastructure. Ronald B. Gustilo, national campaigner for Digital Pinoys, says affordability, accessibility and digital literacy continue to weigh on adoption, while concerns around misinformation, deepfakes, job displacement and distrust need to be addressed through education, responsible use, transparency and stronger safeguards.

In our earlier report on Philippine e-commerce payments, we noted that cash-on-delivery still accounts for a sizable share of online transactions despite rapid growth in QR codes and bank transfers. The piece highlighted how this uneven shift to digital payments can hurt conversions when shoppers can’t use their preferred method, underscoring broader infrastructure and readiness gaps as the country digitizes.

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