In PH, curiosity outruns capacity for AI adoption
Filipinos’ growing interest in artificial intelligence (AI) is running ahead of its uneven adoption in the Philippine financial sector, threatening to limit its potential to expand financial inclusion, a state-run think tank warned.
In a policy note, the Philippine Institute for Development Studies (PIDS) said that strong consumer interest in AI is not matched by institutional capacity. This placed the country near the bottom among its Southeast Asian peers in terms of AI preparedness.
The Philippines currently has a score of 0.5 in the index, higher than Vietnam’s 0.48 but behind Indonesia, Thailand and Singapore, which scored 0.52, 0.54 and 0.8, respectively.
“Filipinos are among the most active in the region in engaging with AI-related tools, but digital infrastructure and innovation capability remain its weakest pillars,” PIDS said.
“This structural curiosity-capacity gap helps explain why AI adoption in the financial sector has been gradual, despite strong consumer-driven digital engagement,” it added.
Already, formal account ownership has reached 56 percent in 2021, while digital payments stood at 57.4 percent.
However, PIDS noted that 51.4 percent of Filipinos remain unbanked, with many still relying on informal channels. This indicates that connectivity does not necessarily translate to financial engagement.
PIDS said AI could address this financial exclusion, but not without challenges.
