Artificial intelligence (AI) is starting to transform how local sari-sari stores operate, giving small retailers practical tools to make smarter decisions and improve profitability. Insights from tech startup Packworks.io show that AI is no longer a distant concept for microenterprises—it’s now actively supporting day-to-day store management and sales performance.

Analyzing more than 300 stores over a two-week period in September 2025, Packworks recorded a 46% increase in daily gross merchandise value (GMV) and a 17% rise in total sales. Interestingly, stores using AI-driven recommendations achieved these gains even while operating 20% fewer selling days, suggesting that AI helps owners optimize inventory, product mix, and demand planning to maximize sales during available hours.

These results came from Packworks’ Store Insighting Project (SIP), a personalized AI-powered report that turns each store’s transaction history into actionable recommendations. Underperforming products were identified, allowing store owners to make informed stocking decisions and improve overall efficiency.

Packworks developed its AI tools with support from DOST-PCIEERD’s Startup Grant Fund, in collaboration with ST Telemedia Global Data Centres (Philippines) for AI model processing, and Ateneo BUILD for data warehousing and business intelligence. Chief Data Officer Andoy Montiel noted that even in early adoption, stores have seen measurable improvements in both sales and operational efficiency.

While AI could unlock PHP 2.8 trillion in economic benefits by 2030, only 14.9% of Philippine businesses currently use AI, highlighting a gap Packworks aims to close by providing practical, accessible solutions for microretailers.

“Technology and strategic partnerships can drive sustainable growth for neighborhood stores across the Philippines,” said Co-Founder Hubert Yap, emphasizing Packworks’ mission to bring AI to the country’s smallest retailers in line with the Philippine Development Plan 2023–2028.

Learn more about Packworks’ insights and data trends at packworks.io or follow their Facebook page.