AI, SaaS, and Smart Policies: How the Philippines Can Win the Digital Future

One of the sessions of the third edition of SaaScon PH captured the urgency and opportunity of the digital economy in the Philippines.

Industry, government, and tech leaders were brought together to discuss how AI, policies, and public-private collaboration are reshaping the SaaS landscape.

The panel featured:

• Dr. Gonzalo Varela, Lead Economist, Prosperity Practice Group, World Bank
• Frank Vibar, Chief Information Officer, Asian Hospital and Medical Center
• Dr. Tirso Raymond Gutierrez, representing Usec. David Almirol, Undersecretary for E-Government, Department of Information and Communications Technology (DICT)

The discussion, moderated by Monchito Ibrahim, Vice President of the Analytics and AI Association of the Philippines, gave attendees a clear view of the opportunities and risks facing the country’s digital future.

Let’s unpack their insights together.

The Philippines is at a turning point, with AI-powered solutions expected to add over ₱2 trillion to the economy every year by 2030. Sectors like retail, healthcare, IT-BPM, manufacturing, and finance are already feeling the shift.

But as Ibrahim emphasized, “Today’s discussion is not just about identifying opportunities but also trying to address challenges like inclusivity, ethical governance, and sustainable growth.”

Dr. Varela shared that the Philippines ranks 67th out of 165 countries in the IMF’s AI Preparedness Index, landing right in the middle globally and in ASEAN.

While we trail Singapore, Malaysia, and Thailand, we stay slightly ahead of Vietnam.

But Dr. Varela stressed that ranking isn’t everything.

He pointed out, “The opportunities for the Philippines are substantially higher than what we see in other countries in ASEAN,” because of our strong IT-enabled services sector.

This sector can either boost the economy or put jobs at risk, depending on how we adapt.

“We move towards more sophisticated services like telemedicine, it’s a win-win,” he explained. “But services that are more data imputing, voice services, the typical call center that is heavily exposed to substitution in terms of jobs. Firms may become more productive, but actually, jobs are going to be at risk.”

While government efforts are ramping up, the private sector isn’t standing still. A recent IBPAP study showed that 23% of BPO firms are either already AI-enabled or will be within a year.

Even without major government support, companies are investing in AI and workforce upskilling to stay globally competitive.

At Sprout, we see this change firsthand. Our AI-powered HR and payroll solutions help companies automate operations, develop talent, and build resilience. This gives them an edge in a fast-moving market.

Government digitization efforts are gaining ground too. Dr. Gutierrez shared updates on the eGov PH Super App, a platform that connects services across 22 national agencies like the BIR, SSS, and PhilHealth.

One key feature is the integration of the digital national ID. Filipinos who download the app can access a digital version of their national ID, making it easier to verify identities without needing a physical card.

As Dr. Gutierrez explained, “We’ve started the foundation for the national government to simplify, digitize, and make things work better for the average Filipino citizen.”

With 92 million digital national IDs already issued, this digital backbone is being laid for faster and stronger digital adoption across the country.

AI is also reshaping healthcare. Vibar outlined how Asian Hospital is using AI to improve diagnostics, personalize treatments, and streamline hospital appointments.

“Using predictive analysis, AI can identify at-risk patients even before symptoms appear,” he shared. Early detection could save countless lives and time.

The hospital is also planning a healthcare app where patients can book appointments, access test results, and manage their health records all in one place.

These innovations are not just meant for Metro Manila. Through telemedicine and remote patient monitoring, healthcare access in provinces is expected to dramatically improve.

While AI and SaaS are moving fast, digital infrastructure is still playing catch-up. The Internet in the Philippines is still relatively expensive and patchy, especially in remote areas.

For the country to unlock the full potential of AI and digital services, last-mile connectivity must improve. Dr. Varela stressed that “investing in bringing digital infrastructure to these remote areas is valuable, is profitable, and leads to productivity of firms growing.”

He also pointed to the Connected Philippines Bill currently in Congress, which could bring more competition to the telecom sector and lower internet costs.

More competition means better access, better prices, and faster growth for everyone, from small startups to large enterprises.

Dr. Gonzalo Varela stressed the point clearly: “Data governance, data interoperability within government… is an area in which also more needs to be done.”

Countries like Georgia are already using AI for smarter tax audits by connecting their government data systems. The Philippines needs to move in the same direction by building clean, connected data infrastructure to unlock AI across services like healthcare and finance.

But today, challenges still stand in the way. As Monchito Ibrahim pointed out, the country has two AI roadmaps: one from DTI, another from DOST.

Without connected systems and clear direction, the Philippines risks falling behind in the race for digital growth.

As the discussion wrapped up, the panelists agreed that AI is not replacing SaaS. Rather, it’s evolving. Or as Vibar put it, “SaaS is not dead… it’s SaaS plus AI.”

This shift is creating new ways for companies to scale, innovate, and serve. But it also demands faster action on infrastructure, workforce upskilling, and building stronger digital systems across both the public and private sectors.

Dr. Varela reminded us what’s at stake. “One third of all jobs in the Philippines today are exposed to AI.” Some will be enhanced while others will be replaced. What matters is how quickly we prepare.

At Sprout, we believe the future belongs to businesses that move early, move smart, and move together.

If you’re ready to lead in the age of SaaS + AI, check out our blog, thought leadership materials, and upcoming events for more insights on where the future of work is heading.

And when you’re ready to take the next step, let’s talk about how Sprout can help your team thrive today and into the next chapter.