There is a fast progression of the Philippines becoming a primary AI hub within the Southeast Asia region. More and more industries are starting to use AI. Also, local startups are creating new AI tools to help businesses run better, offer better customer support, and understand their data.
This increased activity shows that there is a transformation and an emerging exciting development in the tech field of the country.
AI Startups Are Growing
Over the last two years, over 100 new domestic AI-based startups emerged, from logistic optimisation, e-learning, customer service, to customer analytics, and the country's top universities, such as Ateneo de Manila University and University of the Philippines, have started AI research labs, which serve as a local AI talent incubator in the future.
Secretary Ivan John Uy has promised that the government will keep working together with the private corporations to roll on with pilot initiatives and research grants in machine learning, robotics, and natural language processing, such that artificial intelligence (AI) is not only accessible within giant corporations but also in small and medium enterprises (SMEs).
AI in Fintech
The financial technology (fintech) sector may be regarded as the pioneer that uses AI in the Philippines. AI is applied in different operations, used by banks and financial organizations:
- Risk assessment: Based on the information, AI systems can single out a reasonable loan applicant
- Preventing fraud: AI systems can spot unusual and potentially fraudulent transactions.
- Simplifying payments: They are making payment systems faster and more efficient.
One great thing about AI is how it can help people who don't usually get much help. For instance, fintech leverages technology to bring people in the rural areas into the banking system, as their families had never been to the bank or even obtained some insurance.
AI is also taking over in the newer definition of digital finance - cryptocurrencies and blockchain applications.
To know more about how AI and cryptocurrencies have impacted the world of finance, you can use different websites such as CryptoManiaks. These sites have good info and updates on finance and crypto.
By balancing innovation, security, and compliance, there is a great chance that the Philippines will be the most acclaimed fintech and AI center in Southeast Asia.
Challenges for Local Innovators
The Philippines has some challenges when applying AI:
- First, families that are residing in the country do not necessarily have a strong internet connection. There is also the problem of an insufficiency of adequately trained personnel to handle the development of AI technology.
- Secondly, another issue is that numerous individuals are worried about information security and AI morality. The government has begun to audit AI systems to cover this.
Global Competition, Local Opportunity
The country is contending with other countries such as Singapore, Vietnam, and Indonesia, which have put out a national artificial intelligence strategy. The Philippines has a considerably large, English-speaking, and tech-savvy population, which has made it a leader in business process outsourcing (BPO).
Major companies are now setting up AI centres in Manila and Clark to use this talent for data work and testing. Local AI startups are also attracting investment, showing the country's potential to be a major player in the global AI industry.
The Path to Responsible AI
The future of AI in the Philippines will not only be predetermined by the next innovative advances in the sphere, but primarily, the ethical application of AI. Besides, an ethical (e.g., the community perception of AI usage and the explanation of the outcomes), transparent, and influential application of AI will be the key to achieving the potential of AI in other fields and communities.
For as long as there are no boundaries between enterprise and state support in the private sector, the Philippines is set to be the socially accountable and technologically repressed driver in the field of AI in the Southeast Asia region.