The use of artificial intelligence (AI) among Philippine businesses grew to 32% from 21% a year earlier, but most users still rely on basic tools such as chatbots, according to a study commissioned by Amazon Web Services (AWS).
The study, “Unlocking the Philippines’ AI Potential 2026,” estimates that over 396,000 businesses now use AI, a 52% increase in adoption. However, only 17% of businesses have a concrete plan to expand AI across multiple business functions.
“Philippine businesses are optimistic about the potential value AI can drive, and have moved to adopt the technology,” said Precious Lim, country manager, Philippines, AWS. “AI is still developing, with next-generation technologies like AI agents and physical AI promising to change the way we work. The next opportunity will require collaboration between the public and private sectors to help businesses move from simply adopting AI to driving impact.”
Conducted by research firm Strand Partners, the independent study surveyed 1,000 Philippine business leaders and 1,000 members of the public. The business sample represented different company sizes, sectors, and regions.
Among AI adopters, 70% use the technology mainly for basic tasks, down from 78% in 2025. Another 18% use AI across several business functions, while 12% use more advanced systems, up from 8% last year.
Reported benefits include productivity gains for 74% of adopters and increased revenue for 68%. Businesses reporting higher revenue said their average increase was 20%.
Measuring those benefits remains a challenge. Only 46% of businesses are confident they can accurately measure the financial returns from AI projects. Just 31% of adopters use performance results to determine whether to expand or stop projects.
Preparing for AI agents
The study also examined agentic AI, which can carry out tasks toward a goal with less direct human input.
Only 39% of businesses have heard of the technology. Among those familiar with it, 6% have fully deployed it, while 20% are testing it.
Just 19% of businesses feel fully or very ready for next-generation AI. Among reasons for limited readiness, 47% cite shortages of AI and digital skills, while 39% cite technical or data problems.
Businesses estimate that only 31% of their workforce feels confident using advanced AI tools.
The study recommends improving data quality, setting clear measures of success, and training employees to check AI results. It also urges businesses to decide which tasks AI can handle independently and which still require human review or control.