The Philippine digital economy is seen to grow exponentially with the adoption of artificial intelligence (AI), according to Trade Undersecretary Rafaela Aldaba.
Aldaba said the adoption of AI is expected to create revenues amounting to $92 billion equivalent to 12 percent of the Philippines’ GDP by 2030.
“The acceleration of digital transformation paved the way for the growth of the digital economy in the Philippines, “ Aldaba told the Philippine Exporters Confederation Inc. general membership meeting on Tuesday.
Aldaba said the country’s revenues in the internet economy is estimated at $17 billion in 2021.
By 2025, this is projected to grow by 47 percent to $25 billion.
Aldaba said the government will continue to build and support the creation of a robust startup ecosystem as this would serve as the muscle of the country’s digital transformation.
Citing a study by McKinsey, Aldaba said the pandemic has advanced digitalization by seven years globally.
Based on a survey conducted by Microsoft, 80 percent of business decision makers in the country are now saying that innovation is a must; 80 percent of Filipino internet users said they have already purchased items online.
The Bangko Sentral ng Pilipinas reported an increase in the volume of online financial transactions by 929 percent in terms of volume, and 10,802 percent in terms of value.
“New technologies are changing the way goods and services are being produced and consumed. And this will create tremendous opportunities for MSMEs (micro, small and medium enterprises) especially in digital trade. Digital trade allows MSMEs to bring their products and services to a larger customer base. MSMEs’ participation in the digital platforms would also allow them to access digital professional services beyond the borders.
Digital trade can make logistics more efficient, and market expansion through e- commerce and global e -marketplaces. And with fintech opportunities are created for MSMEs to access loans and financing and enable them to use seamless payment systems,” Aldaba said. Irma Isip
