‘Global AI surge demands policy readiness to boost Philippines data industry’

MANILA, Philippines — Consumer advocacy group CitizenWatch Philippines is calling on lawmakers to adopt clear and robust data localization policies, warning that policy gaps could leave Filipino consumers exposed as digital technology reshapes education, work and business.

“AI has already become part of everyday life for Filipino consumers, especially among students and young professionals,” said CitizenWatch Philippines lead convenor Orlando Oxales. “As adoption expands, policies must evolve alongside technology so consumers can safely and reliably benefit from AI.”

Recent data highlight the rapid adoption of AI in the country. According to Statista and We Are Social-Meltwater, the Philippines ranks sixth globally in ChatGPT usage, with approximately 46 percent of internet users engaging with the platform, surpassing the global average of 26 percent. Meanwhile, the 2025 State of Higher Education report by education technology firm Instructure Holdings, Inc. found that 63 percent of Filipino students utilize generative AI tools, such as ChatGPT, for writing, translation, and research.

This surge in use mirrors the rapid expansion of the local AI economy. Market estimates project the Philippine AI sector to grow from roughly $772 million in 2024 to as much as $30 billion by 2030. Separately, the Department of Trade and Industry has stated that AI adoption could contribute up to 12 percent to gross domestic product growth, or approximately $92 billion. These trends indicate a significant increase in data generation, demand for connectivity, and reliance on cloud-based digital infrastructure.

CitizenWatch noted that AI use is becoming more customized, with platforms now allowing users and organizations to develop task-specific AI tools and agents. These systems require constant internet connectivity and substantial computing resources, which are typically hosted on cloud infrastructure, making the physical location of data storage a growing policy concern.

Oxales cited local technology companies such as Senti AI, Xurpas AI Lab and Kital Philippines that are developing AI-powered solutions for customer service, analytics, and Filipino-language processing, while sectors including fintech, logistics, media, and business process outsourcing are deploying AI for credit scoring, workflow automation, content moderation and customer engagement, further increasing dependence on data centers and cloud services.

“As AI systems grow more complex, they require larger volumes of data and continuous data exchange,” Oxales said. “Where these systems are hosted directly affects performance, reliability and user experience.”

On the other hand, Jimmy Go, president and CEO of tech distributor VST ECS Philippines, said localized data storage can improve speed and reliability while also encouraging investments in power, cooling and energy infrastructure.

“AI is now being embedded into critical industries such as Aboitiz Data Innovation, which has deployed AI tools to optimize power plant performance and electricity management, while Globe Telecom has reported using AI to optimize energy use across its network, generating electricity savings of 11.3 million kilowatt-hours in 2024, equivalent to around P25 million,” Oxales said.