Navigating the digital revolution: Trust and innovation in the Philippines

As the Philippines accelerates its digital transformation journey, the integration of artificial intelligence (AI) and robust cybersecurity measures has become paramount. These technologies present unprecedented opportunities to drive economic growth, improve services, and make everyday life better for Filipinos. However, they also bring new challenges that require careful navigation to build trust and ensure sustainable progress.

A recent global study conducted by KPMG and the University of Melbourne, “Trust, Attitudes and Use of Artificial Intelligence: A Global Study 2025,” reveals a complex relationship between AI adoption and trust. Surveying over 48,000 individuals across 47 countries, the research found that while 66% of respondents use AI regularly, only 46% actually trust it. Furthermore, although 83% believe AI will deliver wide-ranging benefits in the future, many express concerns regarding misinformation, job displacement, and data privacy.

In the workplace, the survey uncovered a troubling trend. Sixty-six percent of respondents rely on AI-generated outputs without verifying their accuracy, and 56% have encountered AI-related errors. Even more alarming, 48% admitted uploading sensitive company data into public AI tools, exposing significant data security risks. These findings underscore the urgent need for AI literacy and robust governance frameworks that promote responsible and secure AI use.

As digital transformation expands, cybersecurity emerges as a critical pillar in maintaining stakeholder trust. Insights from KPMG’s Cybersecurity Considerations 2025 report for the Technology, Media, and Telecommunications (TMT) sector emphasize that embedding trust into AI systems, designing for resilience, and securing cloud environments and supply chains are top priorities for organizations navigating today’s complex digital landscape. Although the report focuses primarily on the TMT sector, its recommendations resonate across industries.

One of the most important shifts recommended is moving from siloed cybersecurity functions toward integrated, organization-wide security strategies. Embedding security into every product, service, and process from the earliest stages of development helps reduce risk and fosters a culture of security awareness throughout organizations. This shift-left approach encourages proactive risk mitigation rather than reactive firefighting. Additionally, with businesses increasingly relying on complex supply chains and third-party vendors, modernizing supply chain security is vital to address vulnerabilities and improve overall operational resilience.

In the Philippines, the digital landscape is evolving rapidly, with AI and digital technologies playing a pivotal role in the country’s economic development. Yet, the challenges highlighted in global studies are also deeply felt locally. To harness the full potential of digital transformation, organizations must prioritize building trust through transparency, education, and strong governance. Investing in AI literacy programs tailored to the Filipino workforce will empower employees to use AI tools responsibly and effectively. At the same time, clear policies on data usage and AI application must be developed and enforced to protect sensitive information and maintain stakeholder confidence.

Strengthening cybersecurity across all sectors is equally critical to support inclusive growth. This requires not only deploying the right technologies but also building the right capabilities, from risk assessment and threat detection to incident response and recovery. Cybersecurity should no longer be viewed solely as an IT concern. It must be a core component of business strategy and public trust.

Building this trusted digital future calls for broad collaboration. Business organizations, like the Management Association of the Philippines (MAP), play an essential role by fostering connections among industry leaders, government agencies, and startups. Through initiatives, such as the upcoming MAP x KPMG Technology Summit on June 17 at Shangri-La The Fort, MAP and R.G. Manabat & Co. (KPMG in the Philippines) are creating vital platforms for dialogue and shared learning. The Summit will cover key topics, including digital transformation, lessons from past failures, cybersecurity, data privacy, and innovation.

The Summit will also highlight and celebrate promising new ideas through the awarding of the KPMG in the Philippines Academic Innovation Challenge winner, recognizing outstanding student innovations, and the Global Tech Innovator (GTI) Competition in the Philippines winner, which honors exceptional technology-driven enterprises. These initiatives demonstrate that nurturing talent and fostering innovation are essential to building a resilient and trusted digital economy. By spotlighting bright minds and emerging businesses, we encourage a culture where creativity and responsible technology deployment drive the nation forward.

Policymakers must also enact comprehensive regulations that address the ethical and practical dimensions of AI and cybersecurity. Educational institutions are equally critical, preparing a digitally literate workforce by embedding AI and cybersecurity topics into curricula and offering specialized training programs. Meanwhile, professional organizations and industry associations have opportunities to raise awareness, set standards, and bridge gaps between technology adoption and understanding through forums, joint initiatives, and public education campaigns.

The path to a digitally transformed Philippines holds immense promise but also demands vigilance and responsibility. By addressing trust in AI and reinforcing cybersecurity frameworks, our nation can build a resilient digital infrastructure that fosters inclusive and sustainable growth. Through collective effort and thoughtful leadership, the Philippines can navigate the complexities of the digital age and emerge as a regional leader in responsible innovation.

Jallain Marcel S. Manrique is co-vice chair of the MAP Technology Committee. He is partner head of Technology Consulting of KPMG R.G. Manabat & Co.

map@map.org.ph

jsmanrique @kpmg.com