2024 was a year of technological innovation for Filipinos, with advancements in artificial intelligence (AI), fintech, and e-commerce reshaping daily life. These developments opened up new opportunities while introducing challenges like cybersecurity threats and cryptocurrency regulation. In our year-end review, we'll examine some technological developments that influenced 2024 and the problems that still need to be resolved.From novelty to everyday necessityAI became a cornerstone of innovation in 2024, reshaping how Filipinos work and solve problems. According to Microsoft and LinkedIn's 2024 Work Trend Index, 86 percent of Filipino knowledge workers integrated generative AI into their routines, surpassing regional and global averages. Over 60 percent of information technology-business process management (IT-BPM) companies in the Philippines already incorporate AI into their operations. Only 8 percent have reported a reduction in their workforce due to adopting the technology, according to the Information Technology and Business Process Association of the Philippines (Ibpap).AI is also making an impact beyond corporate settings. A drone-based farm management system introduced by the Department of Science and Technology (DOST) was designed to boost agricultural productivity. This initiative supports the government's digital transformation goals by modernizing farming practices and incorporating advanced technology into vital economic sectors. Limited access in rural areas and concerns over misinformation emphasize the need for equitable and responsible AI adoption.Addressing cybersecurity threatsThe rapid shift to digital platforms in 2024 exposed vulnerabilities in the Philippines' cybersecurity framework. According to a PricewaterhouseCoopers (PwC) survey, over 40 percent of regional leaders admitted limited understanding of risks posed by generative AI, underscoring a critical knowledge gap.High-profile cases, such as the arrest of hackers associated with LulzSec, highlighted these challenges. In response, government and private-sector partnerships introduced AI-powered threat detection tools and enhanced cybersecurity training programs. While these steps have strengthened defenses, sustained efforts in education, investment and policy development will be critical to protecting the country's digital economy as it expands.Cryptocurrency in 2024Bitcoin experienced a remarkable year in 2024, with its price more than doubling. By Dec. 24, it reached approximately $94,063 (around P5,547,975.79), soaring from $45,001 at the start of the year. Supportive regulatory improvements and more significant institutional usage were the main drivers of this rise. Cryptocurrency adoption in the Philippines has grown significantly, particularly in investments and remittances. Platforms like Coins.ph and PDAX have experienced increased activity, reflecting this trend. While Bitcoin remains the dominant cryptocurrency, other virtual currencies are also gaining popularity among Filipinos. A cautious and well-regulated approach is essential to effectively integrating cryptocurrencies into established financial systems. This strategy should address security risks, limited public awareness, and regulatory challenges to ensure a safe and inclusive financial environment.Digital trends shaping everyday choicesWith internet penetration reaching 73.6 percent in 2024, Filipinos leaned further into online shopping, education and communication platforms. Search trends revealed growing interest in AI tools, electric vehicles and sustainable living, reflecting a collective push toward innovation and environmental responsibility. At the same time, increased interest in climate-related topics highlighted the country's vulnerability to natural disasters and underscored how technology can amplify awareness and drive solutions to critical issues.Opportunities, challengesTikTok Shop provided small businesses with new ways to reach customers, strengthening revenue streams and brand loyalty. However, TikTok faces significant challenges, including data privacy issues, insufficient content moderation, mental health concerns, accusations of political influence, and intellectual property disputes, emphasizing the need for stronger accountability and improved user protections.Fintech's financial inclusionA report by Inquirer.net revealed that by mid-2024, the nation's six digital banks collectively held over P80 billion in deposits, marking an impressive annual growth rate of 32.26 percent. In 2024, digital payment usage in the Philippines surged to 33.1 percent, up from just 3.2 percent in 2018, according to a survey by UnaCash. Established tools like digital wallets remained popular, while newer innovations such as InvestEd's lending platform and the DigiCities program by TikTok Shop and GCash expanded financial access. These developments supported underserved communities and empowered small businesses with the tools to thrive in the digital economy.Taking a forward lookMaintaining an emphasis on sustainability, inclusion and fairness is essential as the Philippines progresses with its digital transformation. By conquering obstacles and seizing chances, the nation can solidify its standing as a forward-thinking, interconnected digital society by 2025. Next week's column will provide a fearless forecast for 2025, exploring key trends and potential developments.