Philippines Launches AI Center to Help Small Businesses Scale Digital Operations

A New Hub for MSME Digitalization

The Philippine government has opened a facility dedicated to helping small businesses adopt artificial intelligence and digital technologies, marking a concrete step in efforts to narrow the competitive gap between traditional enterprises and digitally native firms across Southeast Asia.

The DTI Bagong Pilipinas AI and Scale-Up Center opened on August 11 in Manila, offering micro, small, and medium enterprises free access to AI training programs, technology demonstrations, coworking space, and business mentorship. The Department of Trade and Industry partnered with Converge ICT Solutions to build and operate the 380-square-meter facility, which targets businesses that lack the capital or technical expertise to experiment with emerging technologies on their own.

Nylah Rizza Bautista, assistant secretary at the Department of Trade and Industry, framed the initiative as a response to the rapid integration of AI into business workflows. The center is designed for three distinct groups: MSMEs looking to adopt AI but uncertain where to begin, startups seeking to scale operations, and entrepreneurs aiming to turn concepts into commercially viable products.

The facility includes coworking stations, meeting pods, training rooms, startup workspace, and technology showcases, all supported by high-speed fiber connectivity. Businesses can walk in or reserve time slots by emailing the center directly. No fees apply.

Three Pillars: Infrastructure, Connectivity, Skills

Dennis Anthony Uy, founder and CEO of Converge, outlined a three-part framework for MSME transformation centered on infrastructure readiness, connectivity, and workforce upskilling.

According to Uy, AI adoption hinges on access to data ecosystems and specialized software that have historically been cost-prohibitive for smaller players. The center aims to lower that barrier by providing shared infrastructure and tools that individual businesses would struggle to procure independently.

Converge SME Solutions is supplying enterprise-grade fiber connectivity for the center under the partnership. The company's senior vice president, Dindo Marzan, said the programs were structured around the operational realities of small businesses, which typically run lean teams and limited IT budgets.

The curriculum emphasizes practical AI literacy and data management, with a focus on augmenting human capabilities rather than replacing workers. Training sessions, workshops, and experiential activities will extend beyond Manila to reach entrepreneurs in provincial areas and traditional sectors.

Broader Digital Transformation Partnership

The AI center is part of a wider digital transformation agreement between Converge and the Department of Trade and Industry, originally signed in November 2025. The partnership includes business broadband packages, e-commerce connectivity solutions, cloud-based tools, cybersecurity support, and productivity platforms tailored for small enterprises.

Angela Gutierrez, vice president at Converge, said the objective is to equip even the smallest businesses with digital capabilities sufficient to compete in both local and international markets.

The center's three core functions are helping businesses learn and adopt AI tools, providing space to test and develop solutions, and connecting participants with mentors, technology providers, industry leaders, government partners, and other innovators. The model is designed to compress the learning curve and reduce the friction that typically discourages small businesses from experimenting with new technologies.

Regional Context

The Philippines faces a familiar challenge across Southeast Asia: a large population of micro and small enterprises that contribute significantly to employment but lag in digital adoption compared to larger firms. According to regional studies, MSMEs account for the majority of businesses in the Philippines but often lack the resources to invest in technology infrastructure or staff training.

By offering shared facilities and subsidized access to AI tools, the government is attempting to replicate models seen in Singapore, South Korea, and Taiwan, where public-private partnerships have accelerated technology diffusion among smaller players. The emphasis on provincial outreach also reflects the geographic concentration of digital infrastructure in Metro Manila, with connectivity and training resources still unevenly distributed across the archipelago.

The partnership with a private telecom provider allows the government to leverage existing infrastructure and technical expertise without bearing the full capital cost. For Converge, the arrangement offers a channel to expand its enterprise customer base and demonstrate use cases for AI-enabled connectivity services.

Whether the center achieves meaningful adoption will depend on sustained engagement from MSMEs, the quality of training programs, and the ability to translate technical literacy into measurable business outcomes. Early indicators will include enrollment numbers, the types of businesses participating, and whether participants continue using AI tools after completing initial training.