Report Overview

Philippines Artificial Intelligence (AI) Market – Industry Trends & Forecast Report, 2031

Philippines Artificial Intelligence (AI) Market size was estimated at USD 772.94 million in 2024. During the forecast period between 2025 and 2031, Philippines Artificial Intelligence (AI) Market size is projected to grow at a CAGR of 27.5% reaching a value of USD 4233.66 million by 2031. Prominent drivers of Philippines Artificial Intelligence (AI) Market include increasing adoption of AI solutions across key sectors such as BPO, healthcare, finance, manufacturing, and government services, supported by a comprehensive national AI strategy, infrastructure development, and rising private sector investment. AI integration is anticipated to significantly boost GDP, enhance operational efficiency, drive innovation, and create new economic opportunities. The country’s tech-savvy population, growing demand for AI-powered customer service, chatbots, and smart devices, along with participation in the global semiconductor and electronics supply chain, further fuels market momentum. However, the sector faces challenges such as limited AI talent, infrastructure gaps, regulatory uncertainties, and funding constraints for MSMEs. To address these, the government is implementing strategic initiatives, including proposed AI legislation, sector-specific roadmaps, and public-private collaborations, with the goal of positioning the Philippines as a leading AI hub in the Asia-Pacific region.

Artificial Intelligence (AI) – Overview

Artificial Intelligence (AI) refers to the simulation of human intelligence in machines designed to think, learn, and make decisions. It enables computers to perform tasks such as problem-solving, pattern recognition, and language understanding, often improving over time through data-driven algorithms and machine learning techniques.

Philippines Artificial Intelligence (AI) Market

Growth Drivers

Government’s AI Strategy and Roadmap Initiatives

Philippine Artificial Intelligence (AI) Market is set to gain significant momentum through the government’s strategic initiatives and roadmap designed to drive inclusive innovations, strengthen governance, and position the country as a leader in AI driven digital transformation. Spearheaded by the Department of Science and Technology (DOST) under the National AI Strategy for the Philippines (NAIS PH), the framework outlines five core strategies including AI infrastructure, workforce development, innovation, ethics and policy, and deployment phased from 2024 to 2028. The strategy promotes collaboration among key agencies such as DICT, DepEd, CHED, TESDA, DTI, DOLE, and PSA alongside the private sector to build a cohesive AI ecosystem. Initiatives like the AI Factory and AI Refinery aim to accelerate adoption by connecting research with industry needs while the establishment of a National High-Performance Computing (HPC) Center and regional HPC sites will boost research capacity with a planned 26-fold increase in computing power by 2028. The roadmap emphasizes decentralizing AI adoption to support MSMEs through regional AI hubs, advancing upskilling and reskilling programs via platforms like Coursera and SPARTA, and integrating AI applications into sectors including agriculture, education, smart cities, creative industries and national security. The Department of Trade and Industry’s adoption of the updated National AI Strategy Roadmap 2.0 further strengthens this effort by incorporating advancements such as generative AI, refining strategic actions and addressing emerging challenges, ultimately ensuring the Philippines is well prepared to harness AI for sustainable economic growth and societal benefit.

Challenges

Limited AI Talent and Skills Gap

The growth of Philippines Artificial Intelligence (AI) Market faces significant challenges, due to a significant talent and skills gap. While the demand for AI applications is increasing across sectors, there is a shortage of professionals with expertise in AI development, deployment, and ethical governance. Limited access to advanced AI training, insufficient integration of AI-focused curricula in educational institutions, and low course completion rates hinder workforce readiness. Many organizations struggle to find qualified AI specialists, data scientists, and engineers, slowing adoption and innovation. Without targeted upskilling, reskilling, and stronger industry-academia collaboration, the talent shortage could restrain Philippines Artificial Intelligence (AI) Market’s full growth potential.

Impact of Escalating Geopolitical Tensions on Philippines Artificial Intelligence (AI) Market

Escalating geopolitical tensions could significantly impact the growth of Philippines Artificial Intelligence (AI) Market by disrupting technology supply chains, limiting access to critical hardware, such as semiconductors, and affecting foreign investment flows. Heightened global conflicts may lead to stricter export controls, reduced collaboration with international AI research hubs, and delays in adopting advanced AI solutions. Additionally, uncertainty in trade relations can increase operational costs for AI developers and service providers. These tensions may also divert government priorities and funding away from AI initiatives toward security concerns, ultimately slowing innovation, market expansion, and the country’s ability to compete in the global AI landscape.Bottom of Form

Philippines Artificial Intelligence (AI) Market

Segmental Coverage

Philippines Artificial Intelligence (AI) Market – By Component

Based on component, Philippines Artificial Intelligence (AI) Market is divided into Software, Hardware, and Services segments. The software segment holds the highest share in Philippines Artificial Intelligence (AI) Market by component. It is driven by its widespread adoption across industries, such as healthcare, telecommunications, automotive, and banking, financial services, and insurance (BFSI). Encompassing key technologies like natural language processing, deep learning, augmented and virtual reality, and machine learning, AI software plays a central role in enabling advanced solutions. Its growth trajectory is expected to remain robust, supported by the increasing demand for AI integrated systems across the region.

Philippines Artificial Intelligence (AI) Market – By Deployment Mode

Based on deployment mode, Philippines Artificial Intelligence (AI) Market is split into Cloud and On-premises segments.

Philippines Artificial Intelligence (AI) Market – By Technology

On the basis of technology, Philippines Artificial Intelligence (AI) Market is divided into Machine Learning (ML), Natural Language Processing (NLP), Computer Vision, and Deep Learning segments. The deep learning segment holds the highest share in Philippines Artificial Intelligence (AI) Market by technology. It is largely driven by its exceptional capability to process large and complex datasets with high accuracy. As a specialized branch of machine learning, it excels in pattern recognition and delivering tailored solutions, making it valuable across industries such as healthcare, telecommunications, automotive, and BFSI. Applications like Google Maps’ use of artificial neural networks to enhance routing and incorporate user feedback highlight its practical impact. Growing digitalization across sectors continues to accelerate the adoption of AI integrated systems, further strengthening the dominance of the deep learning segment in the market.

Philippines Artificial Intelligence (AI) Market – By End User

Philippines Artificial Intelligence (AI) Market by end user is segmented into Healthcare, Agriculture, BFSI, Retail, Education, and Government.

Competitive Landscape

Major players operating in Philippines Artificial Intelligence (AI) Market include Senti AI, Advance.AI, Sprout Solutions, Packetworx, Acudeen, Zennya Health, Voyager Innovations (PayMaya), QBO Innovation Hub, ChatGenie, CAWIL.AI Solutions, CirroLytix, Thinking Machines, TextTeaser, Arcanys, Offshorly, Flatworld Solutions, Elisha Telecom, EACOMM Corporation, KDCI Outsourcing, Indium Software, and Closeloop Technologies. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In July 2025 - July 2025 – Alibaba Cloud, the cloud computing arm of Alibaba Group, launched its AI Global Competency Centre (AIGCC) in Singapore, marking its 10th year of operations in the country. The virtual hub aims to support over 5,000 businesses, 100,000 developers, and more than 1,000 companies and startups in co-developing next-generation AI solutions. Alongside the hub, Alibaba Cloud announced two new Southeast Asian data centers in Malaysia and the Philippines.

• In May 2025 – FedEx introduced its AI-powered FedEx Surround service in the Philippines, offering businesses enhanced shipment visibility, control, and reliability. Leveraging AI, machine learning, and SenseAware ID sensors, the service delivers near real-time analytics, precise package tracking, and disruption prediction to optimize logistics. Available in Select, Preferred, and Premium tiers, it supports industries such as healthcare and aerospace with features like prioritized handling, cold chain support, and 24/7 assistance.

Scope of the Report

By Component

• Software

• Hardware

• Services

By Deployment Mode

• Cloud

• On-premises

By Technology

• Machine Learning (ML)

• Natural Language Processing (NLP)

• Computer Vision

• Deep Learning

By End User

• Healthcare

• Agriculture

• BFSI (Banking, Financial Services, and Insurance)

• Retail

• Education

• Government

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Philippines Artificial Intelligence (AI) Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Increasing Demand from BPO & Customer-Experience Sector
         2. Government AI Strategy & Roadmap Initiatives
         3. Growth of Local AI Startups & Partnerships
      2. Restraints
         1. AI Talent & Skills Gap
         2. Limited High-Quality Local Datasets And Fragmented Data Governance

1. 1. 1. Opportunities
         1. Industry 4.0 Adoption in Manufacturing & Logistics
         2. Localized Models & Filipino-Language NLP
      2. Challenges
         1. Governance, Ethics, & Regulatory Enforcement Gaps
         2. Infrastructure Limitations & High Costs
   2. Technological Advancements/Recent Developments
   3. Regulatory Framework
   4. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
2. Philippines Artificial Intelligence (AI) Market: Marketing Strategies
3. Philippines Artificial Intelligence (AI) Market: Pricing Analysis
4. Philippines Artificial Intelligence (AI) Market Overview
   1. Market Size & Forecast, 2019–2031
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Component
         1. Software
         2. Hardware
         3. Services
      2. By Deployment Mode
         1. Cloud
         2. On-premises
      3. By Technology
         1. Machine Learning (ML)
         2. Natural Language Processing (NLP)
         3. Computer Vision
         4. Deep Learning
      4. By End User
         1. Healthcare
         2. Agriculture
         3. BFSI (Banking, Financial Services, and Insurance)
         4. Retail
         5. Education
         6. Government
5. Competitive Landscape
   1. List of Key Players and Their End Users
   2. Philippines Artificial Intelligence (AI) Company Market Share Analysis, 2024
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships)
6. Impact of Escalating Geopolitical Tensions in Philippines Artificial Intelligence (AI) Market
7. Company Profiles (Company Overview, Financial Matrix, Competitive landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
   1. Senti AI
   2. Advance.AI
   3. Sprout Solutions
   4. Packetworx
   5. Acudeen
   6. Zennya Health
   7. Voyager Innovations (PayMaya)
   8. QBO Innovation Hub
   9. ChatGenie
   10. CAWIL.AI Solutions
   11. CirroLytix
   12. Thinking Machines
   13. TextTeaser
   14. Arcanys
   15. Offshorly
   16. Flatworld Solutions
   17. Elisha Telecom
   18. EACOMM Corporation
   19. KDCI Outsourcing
   20. Indium Software
   21. Closeloop Technologies
   22. Other Prominent Players
8. Key Strategic Recommendations
9. Research Methodology
   1. Qualitative Research
      1. Primary & Secondary Research
   2. Quantitative Research
   3. Market Breakdown & Data Triangulation
      1. Secondary Research
      2. Primary Research
   4. Breakdown of Primary Research Respondents
   5. Assumption & Limitation

*Financial information of non-listed companies will be provided as per availability

**The segmentation and the companies are subjected to modifications based on in-depth secondary for the final deliverable

List of Figures

Figure 1   Philippines Artificial Intelligence (AI) Market Segmentation

Figure 2   Philippines Artificial Intelligence (AI) Market Value Chain Analysis

Figure 3   Company Market Share Analysis, 2024

Figure 4   Philippines Artificial Intelligence (AI) Market Size, By Value (USD Million), 2019–2031

Figure 5   Philippines Artificial Intelligence (AI) Market Share, By Component, By Value (USD Million) 2019–2031

Figure 6   Philippines Artificial Intelligence (AI) Market Share, By Deployment Mode, By Value (USD Million) 2019–2031

Figure 7   Philippines Artificial Intelligence (AI) Market Share, By Technology, By Value (USD Million) 2019–2031

Figure 8   Philippines Artificial Intelligence (AI) Market Share, By End User, By Value (USD Million) 2019–2031

List of Tables

Table 1      Philippines Artificial Intelligence (AI) Market Share, By Component, By Value (USD Million) 2019–2031

Table 2      Philippines Artificial Intelligence (AI) Market Share, By Deployment Mode, By Value (USD Million) 2019–2031

Table 3      Philippines Artificial Intelligence (AI) Market Share, By Technology, By Value (USD Million) 2019–2031

Table 4      Philippines Artificial Intelligence (AI) Market Share, By End User, By Value (USD Million) 2019–2031

Table 5      Senti AI Company Overview

Table 6      Senti AI Financial Overview

Table 7      Advance.AI Company Overview

Table 8      Advance.AI Financial Overview

Table 9      Sprout Solutions Company Overview

Table 10    Sprout Solutions Financial Overview

Table 11    Packetworx Company Overview

Table 12    Packetworx Financial Overview

Table 13    Acudeen Company Overview

Table 14    Acudeen Financial Overview

Table 15    Zennya Health Company Overview

Table 16    Zennya Health Financial Overview

Table 17    Voyager Innovations (PayMaya) Company Overview

Table 18    Voyager Innovations (PayMaya) Financial Overview

Table 19    QBO Innovation Hub Company Overview

Table 20    QBO Innovation Hub Financial Overview

Table 21    ChatGenie Company Overview

Table 22    ChatGenie Financial Overview

Table 23    CAWIL.AI Solutions Company Overview

Table 24    CAWIL.AI Solutions Financial Overview

Table 25    CirroLytix Company Overview

Table 26    CirroLytix Financial Overview

Table 27    Thinking Machines Company Overview

Table 28    Thinking Machines Financial Overview

Table 29    TextTeaser Company Overview

Table 30    TextTeaser Financial Overview

Table 31    Arcanys Company Overview

Table 32    Arcanys Financial Overview

Table 33    Offshorly Company Overview

Table 34    Offshorly Financial Overview

Table 35    Flatworld Solutions Company Overview

Table 36    Flatworld Solutions Financial Overview

Table 37    Elisha Telecom Company Overview

Table 38    Elisha Telecom Financial Overview

Table 39    EACOMM Corporation Company Overview

Table 40    EACOMM Corporation Financial Overview

Table 41    KDCI Outsourcing Company Overview

Table 42    KDCI Outsourcing Financial Overview

Table 43    Indium Software Company Overview

Table 44    Indium Software Financial Overview

Table 45    Closeloop Technologies Company Overview

Table 46    Closeloop Technologies Financial Overview