While Filipinos show strong interest in artificial intelligence, the country's financial sector lacks the capacity to keep up, potentially hindering efforts to boost financial inclusion, according to the Philippine Institute for Development Studies (PIDS).
In a recent policy note, PIDS highlighted a significant gap between consumer curiosity and institutional preparedness, noting that the Philippines ranks near the bottom among Southeast Asian nations in AI readiness. The country scored 0.5 on the AI preparedness index, ahead of Vietnam (0.48) but behind Indonesia (0.52), Thailand (0.54), and Singapore (0.8).
"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 stated. The think tank attributed the slow adoption of AI in the financial sector to this "curiosity-capacity gap."
Although formal account ownership reached 56% in 2021 and digital payments hit 57.4%, PIDS noted that 51.4% of Filipinos remain unbanked, relying on informal financial channels. This suggests that connectivity alone does not translate into meaningful financial engagement.
PIDS believes AI has the potential to address financial exclusion, but warned that significant challenges remain. The study underscores the need for targeted investments in digital infrastructure and innovation to bridge the gap between interest and implementation.