AI USE SOARS GLOBALLY: PHL emerges as top digital economy in Southeast Asia

By Francis Allan L. Angelo

The Philippines is strengthening its position as one of the world’s most connected and empowered digital economies, with the country’s internet-savvy population reshaping media, commerce, and finance at unprecedented rates.

According to the newly released Digital 2026: Philippines Report by global media intelligence firm Meltwater and creative agency We Are Social, the country now boasts 98 million internet users and 95.8 million social media identities—a 10.3 percent increase year-on-year.

With 98.6 percent of Filipinos owning smartphones and a mobile connectivity rate of 117.4 percent, access to digital tools has become nearly universal, enabling people to integrate online platforms into all facets of daily life.

“Filipinos have long been recognized as one of the most digitally active nations, and our 2026 data reaffirms that,” said Mimrah Mahmood, Meltwater’s vice president for Asia Pacific.

“What stands out this year is how digital behaviour has matured, moving beyond streaming and social engagement into e-commerce and digital finance.”

The Digital 2026 global overview reveals that internet users worldwide have now surpassed 6 billion, representing over 75 percent of the global population.

This explosive growth marks a historic turning point as social media users officially become a global “supermajority,” with 5.35 billion active accounts—a figure that reflects deeper, sustained integration of digital life into everyday routines.

Artificial intelligence adoption has also reached a significant milestone, with more than 1 billion people now using AI-powered tools monthly—whether for work, education, content creation, or everyday problem-solving.

“AI has moved from the fringes of tech-savvy circles into mainstream life,” Mahmood said.

“In the Philippines, this is reflected not just in how people use AI tools, but how they integrate them into personal workflows, creativity, and financial empowerment.”

CONTENT HABITS SHIFT

The report highlighted that Filipinos spend an average of 54 hours per week online—second only to South Africans globally—and watch over 20 hours of online video per week, more than twice the time spent on broadcast or cable television.

YouTube and TikTok remain dominant platforms, with usage rates of 82.2 percent and 85 percent, respectively, as content creation and consumption become integral to Filipino digital culture.

The most consumed content formats include music videos (76.3 percent), comedic or viral content (58.1 percent), and influencer vlogs (47.8 percent), underscoring the population’s preference for relatable, entertaining, and socially relevant content.

“The Filipino’s online behavior is a reflection of the country’s limited recreational infrastructure,” Mahmood said.

“For many, the internet is not just a tool—it’s an outlet for entertainment, information, and social interaction.”

This has driven a dramatic shift in advertising strategy, as brands are urged to adopt more authentic, localized, and creator-led content in order to remain relevant.

“Anybody can be a creator in the Philippines these days, and anyone can succeed if they match the stories, feelings, and even humor that others are looking for,” Mahmood added.

For advertisers, this means abandoning stilted or overly product-centric storytelling in favor of dynamic, culturally grounded narratives that resonate with local communities. 

FINTECH FUELS INCLUSION

Digital finance is also transforming the Philippine economy, with over 56.3 percent of the population making online purchases weekly and digital transactions reaching PHP 487.5 billion (USD 8.24 billion) in 2025.

E-wallets like GCash and Maya now account for 39 percent of online payments, while credit and debit cards make up 27 percent.

Despite nearly half of the population still being unbanked, the rapid rise of digital wallets has played a critical role in advancing financial inclusion.

Beyond shopping, 88.5 percent of Filipinos use digital platforms monthly for banking, investing, or accessing insurance, highlighting a growing confidence in managing financial matters online.

This signals a broader shift toward omnichannel strategies, particularly for brick-and-mortar retailers seeking to remain competitive in a mobile-first market.

“Physical retailers must now justify their existence beyond convenience and experience,” Mahmood noted.

“They need to invest in building strong digital presences that complement their physical spaces—spaces that inspire, connect, and convert.”

Brand discovery is increasingly driven by social media, with 41.9 percent of Filipinos discovering new products on platforms like YouTube, TikTok, and Facebook.

Effective content includes unboxing videos, real-life testimonials, creator partnerships, and humorous skits—all emphasizing authenticity and entertainment.

Filipinos pay for digital content at the global average rate, yet they consume more than twice as much media, indicating a strong appetite for value, community engagement, and diverse entertainment.

AI ADOPTION RISES

The country also ranks sixth globally for ChatGPT usage and fourth in AI-powered web traffic, suggesting rapid mainstream adoption of artificial intelligence tools across education, work, and creative sectors.

Mahmood said this reflects “how naturally tech-savvy and adaptable Filipinos are” and added that “they’re true digital natives, open to exploring new technologies that make work, study, and daily life more efficient.”

Other AI tools gaining traction include Grammarly, Microsoft Copilot, and Google’s Nano Banana image generator, with the latter seeing high usage among Filipinos globally.

AI adoption is reshaping key industries, including business process outsourcing (BPO), where Mahmood explained that “AI can automate repetitive tasks, allowing workers to focus on higher-value services that require human empathy and problem-solving.”

In creative services, AI is becoming a collaborator, amplifying human creativity and streamlining content production, rather than replacing jobs entirely.

DIGITAL TRUST MATTERS

Still, the report urges caution, noting that increased digital engagement brings with it challenges such as misinformation, social comparison, and information fatigue.

A total of 67.1 percent of Filipinos expressed concern about the spread of online misinformation, prompting calls for greater digital literacy and responsible content design.

“Social comparison and information fatigue can quietly erode well-being, especially among the youth,” Mahmood warned.

“But the growing awareness around digital well-being presents an opportunity for institutions to lead responsibly—by promoting credible content and designing healthier digital experiences.”

Government programs and youth-led discussions on digital safety are gaining traction, providing momentum for broader initiatives on media literacy and online empowerment.

Mahmood noted that while AI can enhance efficiency, Filipino professionals must “think critically and use their own expertise to add further value” as they integrate new technologies into their workflows.

The Philippines is also being recognized by platforms like LinkedIn as a key growth market for digital jobs, especially those requiring AI-related skills.

As more professionals embrace AI, the challenge lies in leveraging it to enhance—not replace—human skills.

The country’s digital evolution is further reflected in its rising digital advertising investment, with brands increasingly turning to creator-led storytelling and data-driven personalization.

Local businesses are encouraged to tailor digital strategies based on user behavior, while global brands are advised to understand the local culture and language of online engagement.

From finance to content, the Philippines’ digital trajectory showcases an empowered population using technology not just to stay connected but to create opportunities and build inclusive communities.

“The Philippines is no longer just connected—it is empowered by the tools people use every day,” Mahmood said.

Digital 2026 makes clear that the next phase of the country’s growth depends on deepening digital inclusion, strengthening online trust, and embracing technology with empathy and purpose.

The full Digital 2026: Philippines Report is available at https://www.meltwater.com/en/global-digital-trends.

Meltwater, with 27,000 customers and operations across six continents, analyzes approximately 1 billion pieces of content daily to deliver insights to global brands, while We Are Social leverages its expertise in social media to craft culture-driven campaigns.