Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL No. _3480

Introduced by Representative Jan Rurik D. Padiernos, GP (Galing sa Puso) Party-List

EXPLANATORY NOTE

Artificial Intelligence (Al) is rapidly reshaping how decisions are made in areas such as
education, employment, commerce, governance, and information access. In the Philippines, AI is
increasingly embedded in everyday tools—from chatbots and recommendation engines to Al-assisted
hiring, grading, and content creation. However, this widespread integration of Al technologies has
outpaced the development of protective legal frameworks, leaving consumers and citizens vulnerable
to harm.

At present, there is no unified policy in the country that regulates how AI should be deployed,
particularly in high-impact or sensitive applications. Al-driven systems can amplify discrimination,
embed bias in hiring or credit evaluations, or mislead the public through the use of hyper-realistic
deepfakes. People usually are often unaware that AI is processing their data or that decisions that
impact their lives are being made with little human input. These risks are heightened by the absence
of transparency requirements, ethical standards, and effective mechanisms for accountability or
redress.

In addition, the mandates of government agencies involved in digital policy—such as the
Department of Information and Communications Technology (DICT), Department of Science and
Technology (DOST), and Department of Trade and Industry (DTI)—often overlap or lack
coordination when it comes to AI governance. This fragmentation results in regulatory confusion and
slows the establishment of coherent national standards. The country also faces challenges in preparing
its workforce and education system for the demands of an Al-driven economy, further widening the
digital divide.

This bill seeks to fill these regulatory and institutional gaps by introducing a comprehensive
and future-ready legal framework for responsible AI development and use. It establishes foundational
rules to ensure that individuals are clearly informed when they are subject to Al-based interactions or



decisions. It mandates safeguards for ethical AI use in employment, education, and public services,
Particularly to prevent bias and discrimination. It also supports education, skills development, and
public awareness programs to equip Filipinos with the competencies needed to engage with AI safely
and productively. Recognizing the importance of local innovation, the measure encourages the
development of Philippine-specific AI technologies and research that promote social good.

By integrating safeguards for ethics, promoting capacity-building and education, ensuring
enforceability of standards, and supporting responsible AI engineering, this measure aims to protect
sitizens without stifling innovation. It offers a balanced and principled approach that embraces the
benefits of AI while guarding against its misuse—anchoring national progress on technological
responsibility and public trust.

In view of the foregoing, the immediate passage of this measure is earnestly sought.

ATTY. wl D. PADIERNOS

GP Galing sa Puso) Party-List


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL No. 3480

Introduced by Representative Jan Rurik D. Padiernos, GP (Galing sa Puso) Party-List

AN ACT ESTABLISHING A LEGAL FRAMEWORK FOR THE RESPONSIBLE
AND ACCOUNTABLE USE OF ARTIFICIAL INTELLIGENCE IN THE
PHILIPPINES

SECTION 1. Short Title. - This Act shall be known as the "Responsible AI
Development and Use Act”.

SEC. 2. Declaration of policy. - ‘The State recognizes the transformative role of
Artificial Intelligence (Al) in national development, particularly in improving public services,
enhancing productivity, and supporting innovation. At the same time, the State affirms its duty
to protect the rights, freedoms, and dignity of all Filipinos from potential risks posed by the
irresponsible use of AI. Towards this end, the balancing rights between State’s right and of the
people shall primarily be considered when decisions are made or influenced by Al systems.
Policy decisions, with the use of AI shall, at all times, be guided by the principles of ethics,
transparency, accountability, fairness, and respect for human rights, and must support inclusive
and sustainable development.

SEC. 3. Definition of Terms. -

a. Artificial Intelligence (AI) - refers to a scientific discipline and a set of computational
techniques that enable machines or systems to simulate human intelligence, including
reasoning, learning, perception, planning, language understanding, and decision-
making.

b. Al System - refers to any application or service that uses Artificial Intelligence (AI)
for its core functionality and is designed to operate with varying levels of autonomy
to infer, generate, or recommend outputs—such as predictions, content, decisions, or
actions —which influence physical or virtual environments.

¢. High-impact Al - refers to AI systems that significantly affect legal rights, access to
public services, financial or health outcomes, or involve sensitive personal data.

d. Automated Decision-making - refers to decisions made by AJ without meaningful
human involvement.


SEC. 4. Scope. - This Act applies to:

a. Government Sector — All national government agencies, local government units, and
government-owned and controlled corporations that use Al in service delivery, public
decision-making, citizen data management, automated processing of benefits, or any
application that affects the public.

b. Private Sector ~ All private companies, organizations, and institutions that deploy
‘Al systems in customer-facing services, decision-making processes affecting
individuals, or in handling personal, financial, educational, health, or employment-
related data.

c. Critical Sectors — AI applications used in key sectors such as healthcare, education,
employment, finance, law enforcement, and media, particularly when such use
involves high-impact AI systems that may influence access to services, rights,
opportunities, or social outcomes.

d. Physical Al-enabled Systems — Systems such as drones, autonomous vehicles,
surveillance tools, and robotics, particularly those that interact with the public, collect
personal data, or operate in public or regulated spaces.

SEC. 5. Mandatory Disclosure of AI Use. - All entities covered under Section 4 of this
Act shall ensure that individuals are clearly informed when interacting with or being affected
by Al systems. These include, but are not limited to, chatbots, automated messaging services,
recommendation engines, virtual assistants, and Al-driven decision-making tools.

a. Entities in the Government Sector must disclose the use of AI in delivery of
government services, automated processing of benefits, and citizen data
management, particularly when such use affects individual rights or access to
services.

b. Entities in the Private Sector must disclose the use of AI in customer-facing
platforms, service delivery, and any decision-making that involves personal,
financial, health, educational, or employment-related data.

¢. Such disclosures shall be made in a manner that is plain, visible, and accessible to the
affected individuals.

4. Internal systems not directly affecting individuals are exempt from disclosure, unless
they are involved in high-impact AI or automated decision-making with real-world
consequences.

SEC. 6. Ethical Standards for AI Use. - All AI systems used in the Philippines must be
developed and deployed in a manner that respects ethical standards and avoids harm. To this
end:

a. Entities in the Government Sector and Private Sector must ensure that AI systems
used in hiring, promotions, and employment evaluations are free from discrimination
and bias. Employers and public institutions must ensure that AI tools do not violate
labor rights or perpetuate unfair labor practices.


b. The creation, use, or sharing of content generated through artificial intelligence that
falsely represents individuals, such as deepfakes, shal] be subject to regulation. If
such content results in reputational damage, invades a person’s privacy, or amounts
to libel or deception, it shall fall under existing laws on defamation, privacy, and
cybercrime.

c. Al systems must be aligned with the principles of fairness, non-discrimination, and
respect for human dignity.

d. In the education sector, AI systems used for admissions, grading, tutoring, or student
profiling shall promote inclusivity and transparency. Entities in both sectors
operating within the education system shall be supported through government-led
programs that train educators to use AI tools for classroom enhancement,
personalized learning, and academic support, without replacing human judgment.

SEC. 7. AI Education and Training Program. - To support the development of an
adaptive and Al-capable workforce, the Department of Education (DepEd), Commission on
Higher Education (CHED), and the Technical Education and Skills Development Authority
(TESDA), in collaboration with the Department of Science and Technology (Department of
Science and Technology (DOST) and the Department of Labor and Employment (Department
of Labor and Employment (DOLE), shall implement a nationwide AI education and workforce
transition program for both the Government Sector and the Private Sector. The program shall:

a. Integrate AI literacy and responsible use principles in the basic education and higher
education curriculum.

b. Provide technical training and certification on AI technologies through TESDA
learning centers and partner institutions;

c. Offer continuing education, scholarships, and retraining initiatives for workers in
both sectors affected by automation, including a national AI skills development and
workforce transition program to prepare Filipino workers for employment
‘opportunities in Al-related industries and mitigate the impact of automation on job
displacement;

. Promote the inclusion of women, persons with disabilities, and marginalized groups
in AI skills development.

SEC. 8. Center for Responsible AI Development. - A Center for Responsible Al
Development shall be established under the Department of Science and Technology (DOST),
in coordination with the Department of Information and Communications Technology (DICT)
and the Commission on Higher Education (CHED), to serve as a national hub for AI research,
innovation, and policy support for both the Government Sector and the Private Sector. The
Center shall:

a. Promote collaborative research on Al safety, faimess, and human-centered design;
b. Assist government agencies and private stakeholders in evaluating and improving Al
‘stems;
ec. Provide guidance and tools for ethical compliance, documentation, and technical
auditing; and
d. Support local startups, academic institutions, and industries in developing AT
technologies aligned with Filipino needs and values.


SEC. 9. Human Oversight and Redress. - Entities using Al systems that impact
individual rights or access to services must:

a. Provide a clear and accessible mechanism for individuals to seek human assistance
or appeal decisions made through automated decision-making, especially in the case
of high-impact Al systems.

b. Establish a grievance process that allows users to report issues related to the AI
system.

c. Entities in the Government Sector shall observe the same standards in their use of
Al for delivery of government services.

SEC. 10. Enforcement and Compliance. — The Department of Information and
‘Communications Technology (DICT) shall be the primary implementing agency for this Act
and shall be responsible for its overall administration and enforcement.

Any entity found to be in violation of Sections 5, 6, or 9 of this Act shall, after due notice
and hearing, be liable to an administrative fine not exceeding Five Hundred Thousand Pesos
(P500,000.00).

SEC. 11. Implementing Rules and Regulations. — Within ninety (90) days from the
effectivity of this Act, DICT, in coordination with the NPC, DOST, DOLE, DepEd, CHED,
TESDA, and other emerging concerned agencies, shall promulgate the necessary rules and
regulations for the effective implementation of this Act.

SEC. 12. Separability Clause. — If any provision of this Act is declared unconstitutional
or invalid, the other provisions not affected shall remain in full force and effect.

SEC. 13. Repealing Clause. - All laws, decrees, executive orders, rules, and regulations
inconsistent with this Act are hereby repealed or modified accordingly.

SEC. 14. Effectivity. ~ This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in a newspaper of general circulation.

Approved,