What's Happening?
The International Trade Centre (ITC), a joint agency of the United Nations and World Trade Organization, has partnered with Grab Philippines to provide artificial intelligence (AI) and digital skills training to Micro, Small, and Medium Enterprises (MSMEs)
across the Philippines. This collaboration aims to strengthen the digital capabilities of Filipino MSMEs, particularly those in underserved and underconnected communities. The initiative combines Grab’s public-private program, Grab Asenso: Digital Diskarte, with ITC’s Digital Philippines (Digital PINAS) program. The pilot phase of this partnership will run through the end of 2026, delivering ITC-led training through Grab Asenso learning caravans in regional cities such as Davao City, Cebu City, the City of San Fernando, and Puerto Princesa. The training modules cover various topics including digital business profiles, online presence, branding and marketing content strategy, and the use of AI tools for business operations. The curriculum is adaptable to local MSME needs, potentially including e-commerce, financial management, responsible technology adoption, and export readiness. Beyond training, the collaboration will also establish a framework to monitor changes in merchants’ technology adoption and business performance.
Why It's Important?
This partnership is crucial for fostering economic development and resilience among MSMEs in the Philippines, a sector vital for the nation's economy. By equipping small businesses with essential digital and AI skills, the initiative addresses the growing need for digital transformation in a rapidly evolving global market. The ITC emphasizes that digital transformation is no longer optional for small businesses seeking to expand into new markets, create livelihoods, and build resilience against economic shocks and natural disasters. For the U.S., while directly impacting the Philippines, such initiatives contribute to global economic stability and foster a more digitally capable international trade environment. A stronger, more digitally integrated Philippine economy could lead to increased trade opportunities and more robust supply chains, indirectly benefiting U.S. businesses engaged in international commerce. Furthermore, the focus on AI and digital tools reflects a global trend in business development, highlighting the importance of these technologies for competitiveness and sustainability across various economies.
What's Next?
The pilot program is set to continue through the end of 2026, with ITC-led training being rolled out in various regional cities across the Philippines. The partnership will focus on monitoring changes in merchants’ technology adoption and business performance, indicating a commitment to evaluating the program's effectiveness beyond initial training. Future steps may involve expanding the program to more regions and adapting the curriculum based on the observed impact and evolving needs of MSMEs. Grab trainers will complement ITC sessions with refresher training on Grab's own merchant tools, such as the Merchant AI Assistant and Tap and Scan to Pay, ensuring practical application of learned skills. The success of this pilot could serve as a model for similar digital empowerment initiatives in other developing economies, potentially influencing how international organizations and private sector entities collaborate to support small businesses globally.
Beyond the Headlines
This collaboration highlights a broader shift towards integrating advanced technologies like AI into grassroots economic development strategies. It underscores the recognition that digital literacy and AI proficiency are becoming fundamental for business survival and growth, not just for large corporations but also for small enterprises in emerging markets. The initiative also touches upon the ethical and practical implications of technology adoption, emphasizing responsible technology use. By focusing on underserved communities, the program addresses digital inequality, aiming to bridge the gap between technologically advanced urban centers and less connected rural areas. This approach could lead to more inclusive economic growth, empowering a wider segment of the population to participate in the digital economy. The monitoring framework for technology adoption and business performance also suggests a data-driven approach to development, allowing for continuous improvement and tailored interventions, which could set a precedent for future international development projects.
