The Philippines is trailing its Southeast Asian neighbors in the adoption of generative artificial intelligence (GenAI) while also posting the region's lowest internet penetration rate, according to a report by Google, Bain & Co., and Temasek, the Singapore government's investment company.

The e-Conomy SEA report found that 53% of Philippine working population uses standalone GenAI platforms, the lowest rate among the six major Southeast Asian economies. The corresponding usage rates are 54% in Indonesia, 63% in Thailand, 65% in Vietnam, 68% in Malaysia, and 70% in Singapore, against a Southeast Asian average of 58%. The figures put the Philippines five points below the regional average and 17 points behind front-running Singapore.

Internet penetration tells a similar story. At 70%, the Philippines lags the adoption rates of more than 90% recorded in Malaysia, Singapore, and Thailand, as well as Vietnam's 87% and Indonesia's 81%. Singapore and Malaysia, the region's two heaviest standalone GenAI users, also record penetration above 90%.

Consumer-facing AI use is stronger across Southeast Asia, particularly in Thailand, Vietnam, Indonesia, and the Philippines, while enterprise use constitutes the bulk of usage in more mature markets such as Singapore and Malaysia, the report found. In the Philippines, consumer activity accounts for 80% to 85% of AI adoption, with enterprises making up the remaining 15% to 20%.

The regional trust rating for the technology rose to 62%, which the report attributed to increased usage and familiarity, better output, and the technology's track record. It also noted that 69% of consumers across the SEA-6 use AI to compare product options, with 93% trusting AI-driven recommendations. Adoption patterns were described as "consumer-led, mobile-first," with substantial room for both consumers and enterprises to deepen their use of AI.

Southeast Asian users are expected to use AI up to 60 times more by 2030, especially for more complex tasks, the report projected. The region's digital payments are forecast to hit $3.64 trillion by 2035, up from $1.65 trillion this year, driven by account-to-account transfers and e-wallets. Against those projections, the report's own figures leave the Philippines at the region's lowest starting point for AI usage.

"Momentum is concentrated across Indonesia, the Philippines, Thailand, and Vietnam, where mobile-first youth and rising incomes are lifting online spend," the report said.

The e-Conomy report forecasts that Southeast Asia's digital economy will grow 17% by gross merchandise value this year despite geopolitical and macroeconomic uncertainties.

"AI will continue its role as a key contributor to SEA's trajectory in the long term, as growth dynamics are now firmly rooted in the value AI brings to interactions between businesses and consumers," it added.

John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, said the low GenAI adoption reflects gaps in digital infrastructure.

Ronald B. Gustilo, national campaigner for Digital Pinoys, said affordability, accessibility, and digital literacy are among the issues affecting adoption rates.

"While many AI platforms offer free versions, more advanced features often require paid subscriptions," he said via Viber.

Mr. Gustilo also cited the need to address issues such as AI distrust and literacy.

"Some people associate AI primarily with cheating, misinformation, deepfakes, job displacement, or the replacement of human creativity. These concerns should not be dismissed, but addressed through education, responsible use, transparency, and stronger safeguards against abuse," he said.

Whether the Philippines' consumer-led usage extends into the enterprise segment — an area the report says has room to deepen — is the question local experts tie to infrastructure, affordability, and digital literacy.

Based on reporting by Beatriz Marie D. Cruz, Senior Reporter, originally published by BusinessWorld on Oct. 21, 2026: PHL lags region in generative AI adoption — study.