Filipino workers are among the world’s most active users of artificial intelligence, yet local AI startups received less than 1% of Philippine startup investment in 2026, highlighting a gap between technology adoption and business development.
A new report by venture capital firm Gobi Partners found that 25% of Filipino workers use AI agents for complex, multistep tasks, compared with a global average of 16%. However, only 14.9% of Philippine firms use AI tools, suggesting that individual workers are moving considerably faster than businesses.
The findings are contained in “Solo Horizons: Redefining Scale for the Philippine AI Economy 2026”, released November 9 by Gobi Partners in partnership with Alibaba Cloud, Upskill Development Foundation Inc., and Gorriceta Africa Cauton & Saavedra.
According to the report, 86% of Filipino knowledge workers use AI at work, compared with 75% globally.
The investment picture is less encouraging. Philippine technology startup funding declined approximately 65% in value during 2026 year-to-date, although the number of deals fell by only about 8%. Growth- and late-stage companies accounted for roughly three-quarters of investment value, while fintech attracted approximately 78%. AI startups received less than 1%.
Government funding has become increasingly important for early-stage ventures. Public investment rose from less than 1% of total startup deal value in 2025 to approximately 9% in 2026 year-to-date, with DOST programs and National Development Company investments supporting early-stage development. Private investors, however, continue to provide most startup financing.
The funding gap extends beyond AI. According to Gobi Partners, Philippine startups accounted for less than 1% of total ASEAN technology startup funding during the same period.
The report also identifies potential disruption to the country’s information technology and business process management (IT-BPM) industry, which employs approximately 1.9 million workers and generates more than US$40 billion annually.
The IT and Business Process Association of the Philippines has reduced its 2028 employment target from 2.5 million to a best-case estimate of 2.14 million workers, citing AI and global competition.
Beyond traditional startups, Gobi Partners sees opportunities in AI-enabled one-person businesses. Registrations of One Person Corporations increased 27% to 8,640 in 2024, suggesting growing potential for entrepreneurs to build lean businesses using AI tools. Other opportunities identified include semiconductor design, advanced manufacturing, and renewable energy-powered data centers.
The report recommends stronger AI governance, expanded workforce training, and improved access to venture financing. It also proposes restructuring the government’s Startup Venture Fund into a privately managed Fund of Funds to channel public capital through professional investment managers.
Gobi Partners argues that the Philippines must translate widespread AI adoption into locally developed products, competitive businesses, and sustained investment to capture a larger share of the regional AI economy.
The full report, “Solo Horizons: Redefining Scale for the Philippine AI Economy 2026”, is available for download at https://bit.ly/solohorizons2026