A young population is seen to drive consumption growth in the Philippines, but the rise of artificial intelligence (AI) could shed jobs in its mostly services-driven economy, according to global financial giant Visa.

While Asia-Pacific is expected to “remain the largest and fastest-growing consumer market in the world” this year, Visa Business and Economic Insights said in a Feb. 24 report that “young consumers in the region face an uncertain labor market while fueling passion-driven purchases.”

“Asian consumers are getting richer and splurging, even as global jitters gnaw at their confidence,” Visa principal Asia-Pacific economist Simon Baptist and Asia-Pacific economist Barsali Bhattacharyya said.

But Visa warned that employment risks, coupled with global uncertainties, may make Asia-Pacific consumers uneasy in the near term.

“Trade tensions continue to pose risks for export-dependent markets like mainland China and Vietnam, while AI threatens entry-level office jobs in the Philippines and India,” Visa said.

Think tank Capital Economics last week said the Philippines lags behind its Association of Southeast Asian Nations (ASEAN)-5 peers and ranks among the bottom five countries globally in harnessing AI, warning that the country could be among those most affected if AI reduces the size of the business process outsourcing (BPO) sector. India is also at risk, as both countries have built large BPO industries thanks to low labor costs and sizable English-literate workforces, the think tank said.

Capital Economics’ latest AI Economic Impact Index—which measures a country’s ability to capitalize on AI based on innovation, diffusion, and adaptation—placed the Philippines 43rd out of 47 countries, with a score of just 21 out of 100.

Visa said that while AI poses some threat to certain jobs, the technology is also expected to enhance the consumer experience, especially in online shopping.

“Tech-hungry consumers will adopt AI-powered shopping, especially when it comes to searching for and comparing products,” Visa said.

“We expect 2026 to mark a significant step toward the mainstream adoption of agentic commerce—AI-powered assistants and platforms that automate and personalize the shopping process. The region’s tech-savvy consumers, already accustomed to e-commerce, digital payments, and social commerce, are primed for this evolution. In fact, they are often more enthusiastic than their global counterparts when it comes to innovations around shopping and financial planning,” it added.

Visa said widespread adoption of AI-driven e-commerce in Asia-Pacific will depend on whether AI agents clearly save time, improve deal discovery, and reduce shopping friction while addressing consumer concerns about privacy, data sharing, and trust.

As more consumers use AI for product search and comparison, Visa said businesses must ensure their offerings are easily discoverable and accurately represented on AI-powered platforms to build familiarity and confidence.

This AI boom could also spill over into travel and tourism, auguring well for growth in cross-border card transactions, Visa Business and Economic Insights said in a separate Feb. 23 report.

For instance, “economies exposed to the AI investment boom generally saw more cashed-up tourists heading overseas; the Philippines, Taiwan, Malaysia, and Singapore all saw robust increases.”

Visa also cited the Philippines among the regional economies benefiting from ongoing government digitalization efforts.

“The regional shift toward formalization of the economy and digital transformation of public services increased education and government spending, especially in India, Bangladesh, Indonesia, the Philippines, and Malaysia,” it said.