Artificial intelligence. AI.

You’ve probably came across this term a couple of times– on your TV while watching the news or through a suggested post while you are scrolling through your social media.

TechTarget defines AI as the ‘simulation of human intelligence processes by machines, especially computer systems.’ Through the use of natural language processing, expert systems, speech recognition, and machine vision, ai technology is able to mimic cognitive human abilities such as problem-solving, decision-making, learning, reasoning, and perception.

Aside from performing human capabilities, these systems also has the ability to process and analyze large volumes of data, recognize patterns, and come up with predictions or decisions. They are also capable of handing more complex tasks that humans cannot.

You may or may not be aware of it, but we are using AI frequently in our daily lives. A survey conducted by Pew Research Center last December 12-18 2022 revealed that 27% of adult American participants are aware that they are using AI technology every day. From the using Face ID function to open your smartphone, scrolling through social media, and using google search, AI is already engraved in the lives of us human beings.

AI Technology in the Philippines so Far

impact of artificial intelligence in the philippines

In the recently concluded BusinessWorld Economic Forum 2023 held at the Grand Hyatt Manila in Taguig City, Peter Maquera, Microsoft Asia Pacific chief executive officer for Philippines, stated that the integration of AI technology can potentially add $90 billion to the Philippine economy in the next seven years.

Maquera further emphasized the potential businesses that can largely benefit AI tech include ‘content generation, summarization, code generation, and semantic research.’

Last 2021, the Department of Trade and Industry (DTI) released a National Artificial Intelligence (AI) Strategy Roadmap that will serve as the government and private sector’s guide in implementing ai technologies and developing ai ecosystem. The main focus of this roadmap is to elevate every Filipino’s lives, improve local industries’ productivity, and strenghten the competitiveness of the national economy.

As AI tech continues to ascend in the country, Surigao del Norte 2nd District Rep. Robert “Ace” Barbers files House Bill (HB) 7396 which aims to create a ‘superbody’ called Artificial Intelligence Development Authority (AIDA). This agency will monitor and regulate the tasks, duties, and responsibilities in implementing the AI national strategy proposed by DTI.

Aside from that, the government also expressed its plans of building a national research center called National Center for AI Research (N-CAIR), which will be composed of scientists and engineers.

Moreover, it seeks to protect Filipinos from individuals who may take advantage of AIs and use it for fraudulent activities.

Impact of Artificial Intelligence in the Philippines

Artificial Intelligence (AI) has the potential to revolutionize various fields and significantly impact the economy. Here are some ways AI can help in different domains and contribute to the Philippine economy:


Machine learning algorithms can analyze medical data, such as symptoms, medical images, and patient records, to assist doctors in accurate diagnosis with greater accuracy. In addition, AI-powered devices can continuously monitor patient vitals, detect anomalies, and provide real-time alerts to healthcare providers, enabling proactive interventions.

The pandemic season heightened the adoption of machine learning in some Philippine healthcare companies and institutions as they recognize the benefits of using ai in the healthcare field.


AI algorithms are also great help to fraud detection as they can analyze large volumes of financial transactions to identify patterns of fraudulent activities, helping financial institutions detect and prevent fraud.

When it comes to Algorithmic trading, AI-powered trading systems can also analyze market data, news, and historical patterns to make informed investment decisions, improving trading efficiency and profitability. It can also provide a helping hand in risk assessment as AI models can analyze credit histories, financial statements, and market trends to evaluate creditworthiness, assess risks, and make lending decisions.

Manufacturing and Logistics

Starting with Quality control, AI can analyze sensor data and perform real-time monitoring to identify defects or anomalies in the manufacturing process, improving product quality and reducing waste. Aside from that, AI algorithms can analyze historical and real-time data to optimize inventory management, demand forecasting, route planning, and warehouse operations, reducing costs and improving efficiency that is extremely crucial in supply chain optimization.

Lastly, AI can analyze sensor data from machinery to predict equipment failures or maintenance needs, enabling proactive maintenance and reducing downtime. This is called predictive maintenance.


When it comes to the retail industry, AI technology can provide personalized recommendations through analyzing customer data and preferences. They in return provide personalized product recommendations, enhancing the shopping experience for the customres and increasing sales for the enterprise.

When it comes to inventory management, AI is also a handy tool as it can analyze historical sales data, market trends, and external factors to optimize inventory levels, reducing stockouts and overstocking.


Going to the education sector, AI is also can also adapt educational content and methods based on individual student’s strengths, weaknesses, and learning styles, enhancing engagement and improving learning outcomes. Aside from that, AI-powered tutoring systems can provide personalized guidance and feedback to students, facilitating self-paced learning and improving academic performance.

Benefits of Integrating Artificial Intelligence Technology

Internet of Things Philippines Inc. listed down the benefits of using AI which are as follows:

Human Error Reduction

Committing mistakes is completely for humans to commit: that’s what makes them human after all. Howeve, the same thing cannot be said to computers. Correct programming with the integration of AI results to reduced errors and great precision and accuracy in predictions.

Digital Assistance

AI-powered chatbots and virtual assistants can provide customer support, answer queries, and assist in online shopping, improving customer engagement and satisfaction. While there’s still need for a team of customer support at the back end, digital assistants help filter out such queries.

Helps in repetitive tasks or jobs

Doing the same thing over and over again my become too boring or bland for humans. But it’s not the same thing for computers. You can instruct them to do repetitive tasks without complaining about boredom.

The time spent for completing such tasks can be used by humans in activities that require creativity.

Availability 24/7

A typical adult works a 9-hour shift per day with a one hour break in between to referesh themselves. They may even take some days or weeks off to achieve a healthy work-life balance.

On the other hand, computers and machines do not need to file leaves or take breaks just to work efficiently.