PH digital economy surges toward $36B as AI adoption booms

Insider Spotlight 

• PH digital economy grows 16% YoY, on track for $36-B GMV in 2025
• E-commerce leads, driven by 90% growth in video commerce sellers and 1.2B transactions
• Digital finance surges, with $150B in digital payments and strong gains in wealth and insurance
• Transport & food delivery up 20%, among the fastest-growing in SEA
• AI adoption accelerates, with 78% of Filipinos using AI tools and AI app revenues up 79%
  
  

The Philippines is solidifying its position as one of Southeast Asia’s fastest-growing digital economies, sustaining powerful double-digit expansion and moving firmly toward its projected $36-billion Gross Merchandise Value (GMV) by 2025. 

The insight comes from the 10th e-Conomy SEA 2025 Report, “From Digital Decade to AI Reality: Accelerating the Future in ASEAN,” published by Google, Temasek, and Bain & Co.

The report highlights the country’s 16 percent year-on-year digital economy growth, powered by a vibrant ecosystem of innovative platforms, a supportive regulatory environment, and increasingly digital-savvy—and AI-curious—Filipino consumers. 

Together, these forces are fueling deeper penetration of e-commerce, digital payments, travel platforms, and on-demand services nationwide, Google Philippines said in a statement citing the report.

Double-digit gains across major digital sectors

All major digital sectors in the Philippines continue to expand at double-digit rates, with e-commerce remaining the largest contributor, accounting for more than 60 percent of total GMV.

     E-commerce & video commerce

AI-powered personalization, more immersive shopping formats, and low-cost, high-volume transactions are reshaping the online retail landscape.A standout driver is video commerce, which now counts 475,000 sellers—a 90-percent jump from 2024—and has generated 1.2 billion transactions, up 35 percent year-on-year. 

Fashion, accessories (28 percent), and beauty and personal care (23 percent) make up nearly half of video commerce GMV.

      Online travel

SEA’s travel rebound propelled an 11-percent regional GMV increase to $51 billion, with the Philippines posting 14 percent growth and achieving $4 billion GMV. 

Rising fares and tourism campaigns continue to shape traveler behavior and destination choices.

      Online media

The Philippines charts the fastest-growing online media sector in SEA (+16 percent), driven by jumps in digital advertising and gaming demand.

      Digital financial services 

Consumer adoption of digital banking, lending, insurance, and investment products continues to surge.

The Philippines stands out for:

• 36 percent growth in digital wealth, reaching $2B in AUM
• 27 percent growth in digital insurance
• 20 percent growth in digital payments, reaching $150B—2nd fastest in the region
  
  Transport & food delivery

The Philippines leads SEA—alongside Vietnam—as the fastest-growing transport and food delivery market (20 percent), powered by AI-optimized logistics, improved efficiency, and more personalized service offerings.

PH rises as an AI-ready nation

The report underscores that the Philippines is not just digitally strong—it is emerging as one of the region’s hottest AI adoption markets.

High consumer use:

• 78 percent of Filipinos use AI-powered tools for discovery and task simplification.

• 43 percent cite time saved as their top motivation.

Active workforce upskilling:

Enrollment in generative AI courses grew 4.8X, the second-highest rate in SEA.

Strong commercial momentum

AI-featured apps saw 79 percent revenue growth, driven by practical consumer benefits such as better deals, enhanced security, and faster decision-making.

This is underpinned by exceptional trust levels: 94 percent of Filipinos are willing to share data access with AI agents.

Leaders emphasize the momentum—and the responsibility

“The Philippines is a digital powerhouse, sustaining its double-digit growth and firmly on track to hit $36 billion in GMV by 2025… With digital adoption accelerating nationwide, the real story is that our digital economy is becoming truly ubiquitous, preparing us for the dawn of the new era: AI,” said Prep Palacios, country manager, Google Philippines.

Bain & Company partner Bennett Aquino added: “The Philippines remains one of the region’s fastest-growing digital economies… The real opportunity now lies in how businesses harness AI as a catalyst for impact while addressing the country’s unique structural realities.” —Ed: Corrie S. Narisma