A two-week study of more than 300 Philippine sari-sari stores in September 2025 showed a 46-percent increase in daily gross merchandise value (GMV) and a 17-percent rise in total sales for stores using AI-driven recommendations, according to tech startup Packworks.io.
The “Store Insighting Project” (SIP) analysis by Packworks found that stores following the AI guidance earned more even while operating 20 percent fewer days.
The AI tool, which was developed with support from the DOST-PCIEERD Startup Grant Fund in 2024, helps store owners improve inventory management, product mix and demand planning, enabling them to identify underperforming products and prioritize stock to maximize efficiency and sales.
“Even at this early stage, we’ve seen increased sales and operational efficiency from stores using the AI tools we developed with DOST and our partners,” said Packworks chief data officer Andoy Montiel.
Packworks’ initiative supports government efforts to increase AI adoption among micro, small and medium enterprises (MSMEs) in the Philippines.
Only 14.9 percent of Philippine businesses currently use AI, despite its potential to generate P2.8 trillion in economic benefits by 2030, according to the Philippine Institute for Development Studies.
To run its large-scale machine learning models and build a comprehensive data warehouse, Packworks teamed up with ST Telemedia Global Data Centres (Philippines) and Ateneo’s Business Insights Laboratory for Development (BUILD).
“Our goal is to make AI practical and accessible for the smallest retailers. Technology and strategic partnerships can drive sustainable growth for neighborhood stores,” said Packworks co-founder Hubert Yap.
