The total value of transactions in the Philippines’ digital economy is expected to reach $42 billion in 2026, up 15% from $36 billion last year. Growth comes as more people shop, book trips, and use media services online, while artificial intelligence (AI) use also expands.
The 11th annual e-Conomy SEA report by Google, Temasek, and Bain & Company found that 42 million Filipinos now use generative AI (GenAI), which creates text, images, and other content. The report, titled “Building the Intelligent Economy,” projects that the country’s digital economy could reach $157 billion by 2035.
“Filipinos are embracing AI quickly, with 53% of the working population already using GenAI. But we are still early in the journey, and there is significant headroom for growth,” said Bennett Aquino, partner, Bain & Company.
Filipinos send 55 billion questions and requests to AI tools each year. Around 65 million people use AI monthly when AI features built into other services are counted. One in four Philippine AI users uses these tools daily.
The report lists study, work, health, online shopping, and entertainment as the main uses of AI in the Philippines. Consumer use accounts for about 80% of AI activity. On Google’s Gemini, requests for customer support content are nearly three times the Southeast Asian average.
The findings also saw AI’s role in shopping decisions. The report says about a third of shopping journeys start with AI, while seven in 10 users are willing to rely on it when choosing what to buy. Half reported greater trust in AI than a year earlier.
However, Filipinos average fewer than two AI sessions a week, suggesting that use has yet to become a daily habit for many.
“As user confidence deepens and local AI use cases expand, strong policy support and collaborative ecosystem development will be key to unlocking the full potential of the Philippine digital economy,” said Prep Palacios, country manager, Google Philippines.
Online shopping remains the largest part of the digital economy, growing 15% to $28 billion. Online travel grew 14% to $3 billion, while online media grew 26% to $6 billion. Mobility and food services grew 2% to $4 billion.
Digital payments totaled $194 billion, up 23%, the fastest growth in Southeast Asia. The report linked this growth to wider national digital ID use, InstaPay for Business, and the BancNet-PCHC merger.
Unpaid digital loans totaled $7 billion, while digital insurance premiums reached $110 million. The report also cited government AI programs, privacy rules, and the Internet Transactions Act as measures supporting growth.