Philippine entrepreneurs are preparing to commit substantial resources to artificial intelligence (AI), with 87% planning to devote more than one-tenth of their annual turnover to the technology over the next 12 months, according to a survey by HSBC Private Bankn
Among Philippine respondents, 27% said they intend to allocate at least 31% of annual turnover to AI, while 60% expect spending to fall between 11% and 30%. Just 13% plan to commit 10% or less. Because annual turnover refers to a company's total sales revenue, the figures measure planned AI spending as a share of each firm's entire revenue base rather than of profits or technology budgets.

Optimism among Filipino business owners remains widespread: 94% expressed a positive outlook on their businesses, with 51% describing themselves as "very positive" and 43% as "fairly positive."

Respondents from the Philippines showed the strongest conviction in AI's capacity to sharpen their competitive edge among the 17 markets surveyed, with 50% voicing such confidence — ahead of India at 46%.

Roughly 65% of Philippine respondents said they have already adjusted their business operations in response to AI advances, joining Singapore and India in surpassing the 60% global average. The Philippines' 65% adoption rate trailed Thailand and the United Arab Emirates, both at 69%, and matched the levels recorded in India and Singapore.

Worldwide, entrepreneurs surveyed by the bank plan to invest an average of 21% of annual turnover in AI over the coming 12 months, equivalent to estimated $367 billion in combined spending. The figures capture stated intentions for the year ahead rather than completed outlays.

Views on AI's effect on employment were split among Philippine respondents: about 32% said integrating AI would raise their headcount over the next two years, 34% anticipated a decline, and another 34% expected no impact. Globally, 44% of entrepreneurs expect AI integration to lift headcount, 23% foresee a reduction, and about 32% expect no change. The Philippine split contrasts with the global pattern, where optimists outnumber pessimists nearly two to one, and the two-year horizon gives a defined period over which those expectations can be checked.

Looking outward, about 46% of Philippine entrepreneurs are weighing international expansion over the next 12 months, while 52% are considering domestic mergers and acquisitions.

"In Asia, entrepreneurs in ASEAN markets continue to look outwards for growth in line with the association's increasing integration and growing consumer demand from a burgeoning middle class across the region," HSBC said.

"In the Philippines, for example, consumer demand is the second most popular reason for entrepreneurs' business positivity, and places the market first globally," it added.

Indonesia recorded the highest share of entrepreneurs prioritizing international expansion at 62%, followed by Thailand at 55%, Malaysia at 52%, and mainland China at 50%.

"A maturing domestic economy, combined with advanced manufacturing and tech, plus deeper global brand recognition, are all fueling a greater push overseas especially through organic expansion and joint ventures," HSBC said.

On personal priorities, 41% of Philippine entrepreneurs said they were worried about balancing wealth growth with enjoyment — the second-highest share after India's 42%.

"Their other key concern is inflation. This ranks top for markets historically prone to it, led by the Philippines, Indonesia, Thailand and Singapore. All four are also net oil importers, with sensitivity to energy inflation," it added.

The survey covered 3,288 current and former business owners across 17 markets. Respondents were required to hold at least $2 million in investable assets or have a total net worth of $20 million, meaning the findings reflect the plans of high-net-worth business owners rather than the wider small-business population.

— Justine Irish D. Tabile, reporting for BusinessWorld