Amazon Web Services (AWS) has announced that new research conducted with Strand Partners highlights a widening gap in artificial intelligence (AI) adoption between startups and large enterprises in the Philippines. This disparity raises concerns about the emergence of a two-tier AI economy, as noted in a company press release.
Artificial intelligence adoption is expanding rapidly across the Philippines but remains uneven. According to BusinessWorld, approximately 250,000 companies—around 21% of all businesses in the country—had adopted AI by 2024, marking a 50% year-on-year increase. Among these adopters, 64% reported average revenue growth of 18%, while 66% expect average cost savings of 22%, indicating the economic impact of AI implementation.
Startups are advancing more quickly than large enterprises in utilizing advanced AI technologies. The Manila Bulletin reports that 45% of startups in the Philippines are using AI, with one-third applying it at the most transformative stage where AI drives product development and decision-making. In contrast, while 41% of large enterprises are using AI, only 7% have reached this transformative stage. This underscores a structural divide that could lead to a two-tier AI economy.
Key barriers are hindering deeper integration of AI, particularly for larger organizations. According to The Philippine Star, 57% of businesses cite a lack of skilled workers as their primary obstacle, while 42% fear new regulations will slow innovation and increase costs. Companies currently allocate $19 out of every $100 in tech budgets to compliance, and 72% anticipate these expenses will rise within three years, potentially impeding AI-driven competitiveness.
AWS is recognized as the global leader in cloud services. According to Synergy Research Group, AWS held 31% of the worldwide cloud infrastructure market in Q2 2024, compared with Microsoft Azure's 25% and Google Cloud's 11%. With over 240 services across 117 Availability Zones in 37 geographic regions, AWS continues to provide scale and advanced technologies—including AI and machine learning—that support digital transformation across industries worldwide.