The Philippines stands at a pivotal moment in its push toward artificial intelligence (AI) adoption, according to a new UNESCO assessment that highlights both the nation’s economic potential and its structural challenges. The AI Readiness Assessment Report, released this year, finds that AI could contribute up to ₱2.8 trillion (USD 50.7 billion) to the country’s GDP by 2030, with major gains expected in information technology, business process management, manufacturing, retail, and financial services. But the report cautions that the country must first “get its house in order” to fully capitalize on AI-driven growth. 

UNESCO’s evaluation points to persistent barriers—including poor digital infrastructure, siloed policymaking, outdated regulations, and low investment in research and development—that continue to slow the Philippines’ progress. While several agencies, such as the Department of Trade and Industry, Department of Science and Technology, and Department of Information and Communications Technology, have issued AI strategies and roadmaps, the report notes the absence of a single coordinating body to align national policy. 

The assessment also highlights social and educational gaps. Limited broadband access, especially in rural regions, hampers digital skill development, while 91 percent of late-primary students struggle with reading comprehension—an indicator of challenges in building an AI-ready workforce. Stakeholders also expressed concerns about job displacement, data misuse, and the spread of AI-generated disinformation. 

Despite these obstacles, UNESCO describes momentum within industry, academia, and civil society, which have increasingly stepped in to advance AI education, ethical standards, and policy dialogue. The report recommends major reforms, including establishing an interagency AI body, expanding R&D funding, modernizing internet infrastructure, and embedding ethics into AI development. 

Overall, UNESCO concludes that the Philippines has significant opportunities to benefit from AI—if it can confront its infrastructure, governance, and capacity-building challenges with coordinated national action. 

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