The Philippines is now home to more than 50 tech startups that are expected to help grow the country’s AI (artificial intelligence) ecosystem, which if further developed has the potential to contribute $92 billion or 12% of the country’s economy by 2030.

This was unveiled by Undersecretary for Commerce and Industry Rafaelita Aldaba during the Italy-Philippines Business Forum as the DTI urged Italian businesspeople to consider business opportunities in the country and improve relations trade and commerce between the two trading partners.

In terms of investments, Aldaba said the past three years have seen a slowdown in investment flows from Italy. So far this year, Italian investments in the Philippines amounted to just $380,000, down from around $3 million before the pandemic. There are also 13 Italian companies registered with the Philippine Economic Zone Authority with total investments of 700 million pesos. In terms of trade, Philippine exports to Italy recently increased by 14.36%, from over $203 million in 2020 to over $232 million in 2021.

Amid this bilateral economic relationship, Aldaba urged Italian companies to look into the digital transformation of the Philippines.

Aldaba told Italian investors that the Philippines is currently home to more than 50 tech startups that are already using AI as their core technology.

If the Philippines can further develop the AI ​​ecosystem, she said, it has the potential to contribute $92 billion, which is about 12% of gross domestic product by 2030, according to EDBI and Kearney.

One of DTI’s flagship initiatives that would drive digital transformation is the establishment of an Industry 4.0 Pilot Factory, which will house pilot, demonstration and learning labs for Industry 4.0 technologies, such as robotics, intelligent manufacturing systems and cyber-physical systems. . It will serve as a technology platform for various stakeholders and as a training and research center where industries can gain hands-on experience with Industry 4.0 applications.

The facilities offered by the Industry 4.0 pilot plant will house a demonstration and digital experience center where technology providers can present use cases of their products, learning and coworking spaces where training and collaborative discussions can be conducted, an application and design center where in-house applied R&D can be performed, exhibition centers for conducting events, and a prototyping sandbox where researchers and companies, including SMEs, can develop proof of concepts.

To complement the Industry 4.0 pilot plant, DTI said it will also establish the AI ​​Research Center (CAIR) as part of the National AI Roadmap with the aim of making of the Philippines a center of excellence in AI.

“CAIR will be instrumental in scaling this up and working with private sector partners. It will be a public-private partnership hub where data scientists and researchers can perform collaborative AI R&D for industries, produce AI products and services, provide training on AI and AI learning materials, and support the digital transformation of industries, including large enterprises and SMEs,” says Pascal.

To support the development of a robust startup ecosystem comprised of a young, energetic and tech-savvy population, the government is also implementing various incubation and acceleration programs, as well as funding and market access to support innovative startups in all areas. stages of development with the aim of developing local tech giants.

In collaboration with other government agencies, the DTI is also implementing the Philippine Skills Framework (PSF), which aims to develop a common language shared by employers, workers and training institutions, to address the mismatch skills.

To date, three PSF professions have been launched: Supply Chain and Logistics, Game Development and Digital Arts and Animation. Two cross-sectoral FSPs on enterprise development and human capital development have also been formulated.

In order to spread innovation to all regions of the country, the DTI is also setting up Regional Inclusive Innovation Centers (RIICs), which serve as platforms to connect stakeholders across the regions to collaborate and advance the innovation and entrepreneurship to boost regional industrialization.

“We are working with scientists from the National Academy of Science and Technology (NAST) and the Philippine American Academy of Science and Engineering (PAASE) to deliver ITS solutions affecting our regional industries, especially in the production and processing of high-value crops such as coffee, cocoa, coconuts, fruits and nuts, abaca, tropical fibers and bamboo, as well as helping us to further develop the STI ecosystem in the regions” , Aldaba said.