GenAI adoption in PH expected to accelerate in 2025, says AWS

by Edg Adrian A. Eva, reporter

Generative Artificial Intelligence (GenAI) adoption in the Philippines is accelerating in 2025, with full integration expected across various business sectors, according to Amazon Web Services (AWS).

“Generative AI adoption in the Philippines is accelerating. If you look at some of the reports, the market for generative AI is projected to reach US$246.12 million by 2025,” Paul Chen, Head of Solutions Architect, ASEAN at AWS said in an interview.

“We see it accelerating. In fact, across the world it’s accelerating. The Philippines is no exception.”

A report from Statista, cited by Mr. Chen, said that the GenAI market in the Philippines is expected to show a compound annual growth rate (CAGR) of 41.52% from 2025 to 2030.

This growth is projected to result in a market volume of US$1.40 billion by 2030.

After the initial years of learning and adapting to GenAI, Mr. Chen said that 2025 will be the year when GenAI is fully integrated across various business sectors.

This integration will automate, augment, and accelerate tasks throughout the entire value chain.

“This is where it starts to get really real. Beyond the chatbot, beyond just asking, ‘Tell me the answer,’ it’s about, ‘I have this problem—help me resolve it,” Mr. Chen told reporters during his presentation.

AWS-enabled GenAI is said to help increase revenue and reduce costs across the entire value chain.

For instance, Mr. Chen said that in software engineering, production costs could be reduced by 6-20%, while marketing and sales may see a 10-20% increase in return on investment (ROI).

Supply chain management could achieve up to 10% savings in procurement costs, and customer operations could benefit from up to a 20% reduction in service costs.

Mr. Chen said that Smart Communications, Inc. is one of their partners, who have also recently announced its partnership with AWS on Thursday.

Smart said the partnership aims to accelerate its data and AI transformation by transitioning to a cloud-based platform with AWS and Databricks.

This integration is expected to enhance Smart’s time-to-market and operational efficiency.

“What Smart intends to do is actually leverage generative AI to build an advanced version of their customer experience platform in real time. Also, using concepts of summarization and all that to provide a better and more advanced customer experience for their customers,” Mr. Chen said.

“The first wave for Smart is in customer service. I’m pretty sure they already have their minds on other areas such as automation, efficiency, processes, and some of the other things,” he added.

Smart also said that the partnership will provide them with first-hand access to AWS experts and the full suite of its GenAI services.