Artificial Intelligence in the Philippines: 5 Key Benefits for Business

Artificial intelligence (AI) has become more prevalent than ever, especially in the Philippines. The landscape of business and technology is rapidly evolving as AI establishes itself in industries left and right, from marketing to healthcare.

According to recent statistics, —with Gen Z leading at 52%. Moreover, there’s a prevailing positive perception of AI across generations, with 73% viewing it favorably.  

This surge in AI prominence is spearheaded by key government agencies, such as the Department of Trade and Industry (DTI) and the Department of Science and Technology-Philippine Council for Industry Energy and Emerging Technology Research and Development (DOST-PCIEERD). These initiatives lay the foundation for the widespread adoption of AI technologies in the country. 

With the government’s support, artificial intelligence in the Philippines is steadily gaining momentum, increasing the number of businesses recognizing its potential to revolutionize operations and decision-making processes. Explore how different industries leverage AI and discover more about the benefits of artificial intelligence in Philippine businesses.

What is Artificial Intelligence (AI)?

Artificial intelligence is the simulation of computer systems thinking like humans to perform tasks such as reasoning, learning, understanding language, and problem-solving. The AI industry in the Philippines is consistently growing as it continues to analyze large datasets, identify more patterns, and make decisions based on insights. 

There are different types of AI, but the most prominent ones are machine learning and deep learning. With machine learning, AI systems autonomously handle well-defined tasks using labeled, structured data, requiring minimal human input. Examples include product recommendations, email automation, and chatbots. 

Meanwhile, deep learning is a subset of machine learning that utilizes artificial neural networks to process complex data hierarchically, mimicking the human brain’s information processing. Deep learning finds applications in virtual assistants, self-driving cars, and natural language processing.

Together with initiatives from the government, private sector, and educational sectors, organizations are getting the support they need to enhance operational efficiency. In finance, local banks are implementing AI-powered fraud detection systems to safeguard transactions. Similarly, healthcare institutions are leveraging AI to improve disease detection and create personalized treatment plans.

Lastly, and more evidently, in e-commerce, Filipino startups are using AI-driven recommendation engines to curate tailored shopping experiences, driving customer engagement and loyalty. For businesses in the Philippine market, integrating AI isn’t just an upgrade—it’s a strategic imperative.

5 Key Benefits of AI for Businesses in the Philippines

As AI adoption continues to expand across industries, its impact presents numerous opportunities for local businesses to enhance operations and drive growth. Let’s delve into the key benefits that AI brings to businesses in the Philippines.

1. Enhanced operational efficiency

Established early on in its inception, AI promotes enhanced operational efficiency by streamlining repetitive tasks and reducing manual effort. This automation leads to increased productivity and resource utilization. 

For instance, logistics companies like Lalamove utilize AI-powered route optimization algorithms. Their “Intelligent Brain” system optimizes order matching, reducing drivers’ idle running distance and minimizing empty trips—which also cuts carbon emissions.

2. Improved cost savings through automation

By automating tasks with AI, companies can reduce expenses associated with human labor, such as salaries, benefits, office space, and training costs, while also increasing efficiency. Not to say you don’t need human employees for your business, but with AI, your staff can now focus on more complex tasks.

For example, Globe Telecom employs chatbots in the majority, if not all, of their social media and traditional marketing efforts to provide instant assistance to customers, reducing wait times and improving overall service performance. These chatbots ensure 24/7 support without the need for night shift employees, minimizing the need for a large customer support team. 

3. Personalized customer interactions

AI is like a customer data platform that analyzes extensive customer information to deliver personalized experiences, recommendations, and tailored services that enhance customer satisfaction and loyalty.

You can see these efforts in e-commerce platforms like Lazada, which leverages AI algorithms to recommend products based on a user’s browsing and purchase history, improving the shopping experience and driving higher conversion rates.

4. Accelerated innovation and creativity

AI tools facilitate rapid prototyping, experimentation, and idea generation, which help businesses innovate and develop new products and services. Many design software now integrates AI to assist designers in generating creative assets and automating repetitive tasks like image editing and layout design so that they can focus on being inventive and artistic.

5. Reduced human error and improved quality assurance

Continuing with the trend of efficiency, AI integration reduces the risk of human errors in tasks prone to fatigue or oversight, ensuring consistent quality and reliability. 

For example, manufacturing companies can utilize AI-powered quality control systems to inspect product defects and anomalies in real-time, ensuring compliance with quality standards and minimizing costly mistakes.

Embrace the Future of AI Integration in Your Business

The integration of AI into businesses in the Philippines presents plenty of benefits, from enhancing customer service to optimizing decision-making. By leveraging these technologies, you gain a competitive edge, positioning your business on the side of innovation and top-notch customer experiences.  

Take the leap and join other industry innovators by exploring AI business analytics solutions from Inquiro. Learn how AI solutions can benefit your business. Request a demo today and discover the possibilities of achieving consistent customer experiences and driving business excellence.

FAQs

I. How many companies use AI in the Philippines? 

For 2024, the AI market in the Philippines is expected to reach US$1.08 billion, with a projected growth rate of 18.06% annually. While exact figures on AI adoption by businesses are unavailable, this substantial market size indicates significant usage among companies in the

country.

II. What are the key challenges to AI adoption in the Philippines?

Key challenges to AI adoption in the Philippines include limited infrastructure, such as internet connectivity, data privacy concerns, and a shortage of skilled professionals. Additionally, the cost of implementing AI technology and regulatory barriers are other obstacles preventing its widespread adoption in the country.

III. How is the Philippine government supporting AI development?

The Philippine government supports AI development through initiatives like the National AI Roadmap, pending AI bills, and the establishment of AI research hubs. Moreover, collaborations with the private sector and academia aim to foster innovation and cybersecurity in the country.