‘Philippines ready for AI, but more needed’

MANILA, Philippines — The Philippines is ready to be part of the transformation ushered in by artificial intelligence (AI), but investments in infrastructure and human capital and stronger governance are needed to ensure the country benefits from the new technology, according to the Department of Economy, Planning and Development.

While much has been achieved in terms of AI adoption in the country, DEPDev Secretary Arsenio Balisacan told participants of the 11th Annual Public Policy Conference hosted by the Philippine Institute for Development Studies that other actions need to be taken to translate the technology’s promise into benefits.

Balisacan said the country’s digital economy rose to P2.1 trillion in 2024 from just P1.6 trillion in 2018, outpacing many traditional industries.

Balisacan cited the 2024 Oxford Global AI Readiness Index, which showed that the Philippines rose by nine places to the 56th spot with a score of 58.5, higher than the global average of 47.6.

In addition, several milestones have been achieved including the release of the National Innovation Agenda and Strategy Document, which aims to promote innovation as a central driver of growth, the Department of Trade and Industry’s AI Strategy Roadmap, as well as the establishment of the Center for AI Research to position the country as a regional AI powerhouse.

He also cited the Department of Science and Technology’s Democratized Intelligent Model Exchange Repository project, which makes ready-to-use Al models available for agriculture, disaster response and industry, as well as the Department of Information and Communications Technology’s partnerships with Google and Coursera to make free Al training available nationwide.

“These are important milestones. Yet, as UNESCO (United Nations Educational, Scientific and Cultural Organization) reminds us, progress is often slowed by fragmented rules, limited research capacity and uneven access. Technology alone cannot fix governance gaps,” he said.

According to Balisacan, urgent action is needed in terms of infrastructure, talent and governance.

In particular, he said inclusive digital infrastructure should be expanded to connect every Filipino.

The DEPDev chief stressed the need to strengthen human capital through education, reskilling and partnerships.

Furthermore, governance frameworks need to be enhanced and rooted in ethics and trust.

“The age of Al is not about replacing humanity – it is about enriching it. It is about combining human and AI to make governance inclusive, transparent and resilient,” Balisacan said.

Meanwhile, the Philippine Chamber of Commerce and Industry (PCCI) is pushing for investments in inclusive digital infrastructure to close the digital gap.

Despite making strides in digital transformation through growth in digital payments, e-commerce platforms and online public services, the PCCI said the country remains behind its Southeast Asian neighbors in critical dimensions of digital adoption, including infrastructure, business digitization, e-government maturity and tech talent development.

“Broadband access, especially in rural and underserved areas, must be prioritized. If we are to achieve inclusive and sustained growth, local governments, schools (and) enterprises operating in rural areas must have the same level of access and reliability as their urban counterparts,” PCCI president Enunina Mangio said.

While recent reforms and initiatives such as the amendments to the Public Service Act, SIM Card Registration Law, the Digital Transformation Roadmap and the National Fiber Backbone are steps in the right direction, the PCCI said more needs to be done.

“Connectivity must be treated as critical infrastructure, on par with roads, energy and ports,” PCCI director for information and communications technology Dennis Anthony Uy said.

“There should be more strategic investment in both fixed and mobile broadband networks especially in underserved regions to enable more Filipinos and businesses to participate in the digital economy,” Uy said.