Republic of the Philippines

House of Representatives
ueson City, Metro Manila paTe 30 JUN 25

TIME (2:20 _
by__ get

Twentieth Congress
First Regular Session

13

HOUSE BILL NO.

Introduced by Representatives Ferdinand Martin G. Romualdez,
Andrew Julian K, Romualdez and Jude A. Acidre

EXPLANATORY NOTE

Artificial Intelligence (Al) is becoming a driving force in global economic
transformation, offering the potential to increase productivity, improve public
services, and stimulate economic growth. Recognizing this potential, the
Philippines is moving to integrate AI into its national development plans.
However, the rapid advancement of AI also brings significant risks, including job
displacement, data privacy concerns, and potential misuse. To address these
concems while maximizing Al's benefits, this proposed bill outlines a
comprehensive approach to Al governance.

This bill seeks to establish a framework for the responsible and ethical
development of Al in the country. It defines Al broadly. covering technologies
like machine learning, neural networks, and natural language processing. The bill
mandates transparency, fairness, accountability, and privacy as guiding principles
in Al deployment. Organizations would be required to conduct risk assessments,
prevent discriminatory outcomes, protect individual data, and explain decisions
made by Al systems. This ensures that Al is used in ways that align with societal
values and protect human rights. The regulatory framework envisioned by this


bill is expected to position the Philippines as a leader in responsible Al
development while safeguarding the rights and welfare of its people.

This bill also introduces safeguards in the labor sector. It prohibits employers
from making decisions solely based on AI outputs, thereby protecting workers
from unfair treatment. AI is framed as a tool for labor augmentation, not
substitution, promoting its use in enhancing workflows rather than cutting jobs.
These provisions aim to strike a balance between technological advancement and
labor protection, ensuring that AI adoption does not erode workers’ rights.

Furthermore, the bill prohibits harmful uses of Al, including autonomous
weapons systems, and introduces a “Bill of Rights” to shield Filipinos from the
potential harms of Al.

To strengthen policy oversight, the bill calls for the creation of the Philippine
Council on Artificial Intelligence and the Artificial Intelligence Board. The
Council will evaluate the impact of AI systems and guide national AI policy under
the Department of Information and Communications Technology (DICT). The
Board, on the other hand, shall serve as a regulatory authority overseeing AI
deployment. The bill also proposes the creation of the National Center for Al
Research (NCAIR), which shall advance AI innovation and talent development.

Lastly, we acknowledge Representatives Keith Micah “Atty. Mike” D.L. Tan
and Juan Carlos “Arjo” Atayde for filing this bill during the 19" Congress.

In view of the foregoing considerations, approval of this bill is earnestly

sought.
ng CM G. ROMUALDEZ
JUDE #f ACIDRE ANDREW JULIAN K, ROMUALDEZ


Noorons

Republic of the Philippines

House of Representatives

Queson City, Metro Manila

Twentieth Congress
First Regular Session

HOUSE BILL NO. 13

Introduced by Representatives Ferdinand Martin G. Romualdez,
Andrew Julian K. Romualdez and Jude A. Acidre

AN ACT

ESTABLISHING A REGULATORY FRAMEWORK FOR A ROBUST,
RELIABLE, AND TRUSTWORTHY DEVELOPMENT, APPLICATION,
AND USE OF ARTIFICAL INTELLIGENCE SYSTEMS, CREATING
THE PHILIPPINE COUNCIL ON ARTIFICIAL INTELLIGENCE,
DELINEATING THE ROLES OF VARIOUS GOVERNMENT
AGENCIES, DEFINING AND PENALIZING CERTAIN PROHIBITED
ACTS

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

CHAPTER I
GENERAL PROVISIONS

SECTION 1. Short Title. — This Act shall be known as the "Artificial
Intelligence Development and Regulation Act".

SEC. 2. Declaration of Policy. - The State recognizes that science and
technology are essential for national development and progress, driving
innovation, education, and overall national competitiveness. It shall support
their application in various aspects of national life, including economic growth,


social development, and national security. To this end, the State shall pursue the
development of artificial intelligence (AI), including digitization and
infrastructure, workforce development, research and development, and
regulation with the end view of harnessing Al's potentials to uplift the lives of
Filipinos.

SEC. 3. Definition of Terms. — For purposes of this Act, the following
terms shall be defined as stated below:

(a) Algorithm refers to a process or set of rules to be followed in
calculations or other problem-solving operations, especially by a computer;

(b) Algorithmic decisions refer to the analysis of large amounts of
personal data to infer correlations or, more generally, to derive information
deemed useful to make decisions;

(c) Artificial Intelligence (Al) refers to the simulation of human
intelligence in machines that are programmed to think like humans and mimic
their actions;

(d) Artificial Intelligence eco-system refers to a group of Al systems
which are coupled together to some extent to achieve a common goal. The most
common goal of establishing an Al ecosystem is automation via applied
machine learning. This is generally achieved by putting Al systems in both real-
time as well as historical scenarios and generating intelligence out of it;

(e) Artificial Intelligence system refers to a computer system or software
application that utilizes Al technologies and techniques to perform a task or
make a decision such as machine learning, deep learning, natural language
processing, and robotics;

(f) Augmentation refers to the process of allowing human collaboration
with machines to perform a task;

(g) Automated decision refers to the process of making a decision by
automated means without any human involvement;

(h) Automation refers to the creation and application of technologies to
produce and deliver goods and services with minimal human intervention;

(i) Innovation refers to the creation of new ideas that results in the
development of new or improved policies, products, processes, or services
which are then spread or transferred across the market;


(j) Lethal autonomous weapons systems (LAWS) refer to weapons that use
artificial intelligence to identify, select, and kill human targets without human
intervention;

(k) Regulatory sandbox refers to a regulatory approach, typically
summarized in writing and published, that allows live, time-bound testing of
innovations under a regulator's oversight; and

(1) Social scoring refers to the act of rating a person's level of influence
based on evaluating one's followers, friends, and postings on social networks
such as Twitter and Facebook.

CHAPTER II
GUIDING PRINCIPLES

SEC. 4. Principles. — The development, application, and use of Al
systems shall be guided by the following principles:

(a) Inclusive growth, sustainable development, and well-being. —
Consistent with the provisions of Republic Act No. 11293, otherwise known as
the "Philippine Innovation Act" and other existing laws, the development,
application, and use of AI must contribute to the developmental goals of the
country;

(b) Human-centered values and fairness. ~ AI systems must treat people
with dignity and respect;

(c) Robustness, security and safety. - AI must be reliable and safe and
ensure that the public is protected from errors in processing and outcomes;

(d) Accountability. — AI system must provide disclosure of information
that enables monitoring, checking or criticism and allow automation auditing to
ensure that entities deploying AI technologies are accountable for their
consequences;

(e) Transparency and Explainability. — Policies, rules and regulations
governing AI systems must be understandable and ensure that automated and
algorithmic decisions and any associated data driving those decisions can be
explained to end-users and stakeholders in non-technical terms; and

(f) Trust. — AT systems must be transparent; accurate and reliable; provide
augmentation; and protect privacy.


CHAPTER III
AI BILL OF RIGHTS

SEC. 5. Bill of Rights. — The development, application, and use of AI
systems shall be guided by the following rights of every Filipino:

(a) Right to Protection from Unsafe and Ineffective AI Systems. — The
right of every people to be protected from harmful AI systems shall be
inviolable. AI systems, tools, and technologies shall be developed with
consultation from diverse communities, stakeholders, and domain experts to
identify concerns, risks, and potential impacts of the system. Systems shall
undergo pre-deployment testing, risk identification and mitigation, and ongoing
monitoring that demonstrate they are safe and effective based on their intended
use, mitigation of unsafe outcomes including those beyond the intended use,
and adherence to domain-specific standards;

(b) Right Against Algorithmic Discrimination. - No person shall be
discriminated by algorithms and AI systems on the basis of ethnicity, sex,
related medical conditions, gender identity, religion, age, national origin,
disability, genetic information, or any other classification protected by law.
Designers, developers, and deployers of AI systems shall take proactive and
continuous measures to protect individuals and communities from algorithmic
discrimination and shall use and design systems in an equitable manner.

To protect equal rights, proactive equity assessments as part of the system
design, use of representative data and protection against proxies for
demographic features, ensuring accessibility for people with disabilities in
design and development, pre-deployment and ongoing disparity testing and
mitigation, and clear organizational oversight shall be instituted. Independent
evaluation and plain language reporting in the form of an algorithmic impact
assessment, including disparity testing results and mitigation information, shall
be performed and made public whenever possible to confirm these protections;

(c) Right to Privacy. — Every people shall be protected from violations of
privacy through design choices that ensure such protections are included by
default. Data collection that conforms to reasonable expectations and that only
data strictly necessary for the specific context is collected shall be ensured.
Designers, developers, and deployers of AI systems shall seek permission and
respect the decisions of every person regarding collection, use, access, transfer,
and deletion data in appropriate ways and to the greatest extent possible.
Alternative privacy by design safeguards shall be used whenever applicable.
Systems shall not employ user experience and design decisions that obfuscate
user choice or burden users with defaults that are privacy invasive. Consent


OYHHAYON>

shall only be used to justify collection of data in cases where it can be
appropriately and meaningfully given.

Every person shall have the right to privacy. The processing of personal
data in the use of ai systems shall be subject to compliance with the
requirements of Republic Act No. 10173, otherwise known as the “Data Privacy
Act of 2012” and other laws allowing disclosure of information to the public
and adherence to the general data privacy principles. Designers, developers, and
deployers of AI systems shall consider the appropriate and proper legal basis
when processing personal data and respect the decisions of every person
regarding the processing of their personal data. Privacy-by-design safeguards
should be employed as early as the development of AI systems. Systems must
not use user experience or design decisions that obscure user choice or burden
users with defaults that infringe on privacy. Every individual shall be protected
from data privacy violations through design choices that ensure such protections
are included in the systems by default. Consent shall be considered on an
appropriate lawful basis when it is freely given, specifically, an informed
indication of will and evidenced by written, electronic, or recorded means;

(d) Right to Know. — Designers, developers, and deployers of AI systems
shall provide generally accessible plain language documentation including clear
descriptions of the overall system functioning and the role automation plays
including notice that such systems are in use, the individual or organization
responsible for the system, and explanations of outcomes that are clear, timely,
and accessible. Such notice shall be kept up-to-date and people impacted by the
system shall be notified of significant use case or key functionality changes; and

(e) Right to Remedy. — Every people shall be given an opportunity to opt
out from AI systems in favor of a human alternative, where appropriate. They
shall have access to timely human consideration and remedy through a fallback
and escalation process if an automated system fails or produces an error. The
right to appeal or contest AI’s impacts on every person shall not be denied.
Human consideration and fallback shall at all times be accessible, equitable,
effective, maintained and shall not impose an unreasonable burden to the public.

CHAPTER IV
PHILIPPINE COUNCIL ON ARTIFICIAL INTELLIGENCE

SEC. 6. Philippine Council on Artificial Intelligence. — There is hereby
created a policy-making and advisory body of experts under the Department of
Information and Communications Technology (DICT) to be known as the
Philippine Council on Artificial Intelligence (PCAI), herein after referred to as
the Council.


PVYOHRONA

The Council shall engage AI expertise and may call upon technical
resource persons from the agencies of government, the private sector, and civil
society organizations.

It may call upon any official, agent, employee, agency or instrumentality
of the government for any assistance that they may deem necessary to carry out
the purposes of this Act and said agency or instrumentality of the government
shall, with the approval of the President, assign the official, agent, or employee
and provide the assistance requested by the Council.

The Council shall have a core committee composed of an AI researcher,
robotics specialist; a machine learning expert; a data science specialist; a
technology expert; an ethicist; a sociologist or anthropologist, a psychologist; a
public health expert; a security analyst; a legal scholar; a human rights
advocate; a citizens’ representative; and such other experts that the President of
the Philippines may appoint. The members of the core committee shall elect
from among themselves its Chairperson and other officers as may be necessary.

The core committee shall create subcommittees or technical working
groups as maybe necessary for the effective and efficient performance of its
powers and duties as the public interest may require.

The core committee members shall be appointed by the President for a
term of three (3) years except for the AI researcher, robotics specialist, machine
learning expert, data science specialist, technology expert, and ethicist who shall
serve for a term of four (4) years: Provided. That no member shall serve for
more than three (3) consecutive terms: Provided, further, That the members of
the core committee shall receive an honorarium in accordance with existing
policies: Provided, furthermore, That the Department of Science and
Technology (DOST) shall promulgate the nomination process for all core
committee members with a clear set of qualifications, credentials and
recommendations from the sectors concerned.

SEC. 7. Powers and Functions. — The Council shall have the following
powers and functions:

(a) Conduct an evaluation on the impact of artificial intelligence (Al)
systems and development of AI economies in the country;

(b) Review existing policies on Al;

(c) Determine the structures or parameters under which Al systems may
operate;


(d) Develop and promulgate a governance framework based on
fundamental guiding principles on the development, application, and use of AI;

(e) Establish a code of ethics for Al developers for a progressive industry
regulation;

(f) Promulgate rules to prevent abusive and harmful applications of Al;

(g) Prepare mitigation measures against the potential consequences and
impacts of algorithms to processes and business models;

(h) Formulate guidelines to prohibit and penalize indiscriminate and non-
rights- respecting applications of AI and safeguard the health, safety, security,
environmental, and quality standards for the development, application, and use
of Al technologies:

(i) Promote the responsible development, application, and use of Al;

(j) Provide timely and comprehensive information to the public in
addressing emerging issues on Al;

(k) Build AI ecosystem conscience by strengthening intellectual property
and data protection measures;

(1) In consultation with the affected sectors, establish an AI risk reduction
plan;

(m) Together with the Commission on Higher Education (CHED),
Department of Education (DepEd). Technical Education and _ Skills
Development Authority (TESDA) and other education stakeholders, take the
appropriate steps to revitalize the teaching of humanities in state universities
and colleges (SUCs), private higher education institutions (HEIs), technical
vocational institutions, and all elementary and secondary education institutions,
including alternative learning systems, both public and private;

(n) Provide effective measures to counter harmful Als;

(0) Provide programmatic direction in the deployment of AI in
government agencies’ programs and projects;

(p) Ensure an efficient balance in the regulation of AI and consumer
protection to facilitate the growth of emerging business models brought about
by AI utilizing regulatory sandbox approach to reduce the cost of innovation


and barriers to entry, including the collection of data and information regarding
appropriate regulatory action;

(q) Device appropriate mechanisms to protect workers and professionals
from potential job losses brought about by automation and AI;

(r) Guided by the legal mandates of the agencies and LGUs concerned,
identify and task government agencies and LGUs that will be tasked to
implement specific functions to implement the provisions of this Act;

(s) Recommend to the President of the Philippines and the Congress all
policy matters regarding AI;

(t) Submit to the President of the Philippines, the President of the Senate
and the Speaker of the House of Representatives, annual and special reports on
the implementation of this Act; and

(u) Exercise all powers and functions necessary for the objectives and
purposes of this Act.

SEC. 8. Secretariat to the Council. - The Philippine Council for Industry,
Energy and Emerging Technology Research and Development (PCIEERD)
under the DOST shall provide Secretariat support to the Council.

The initial staffing structure and complement of the Secretariat shall be
submitted by the DOST to the Department of Budget and Management (DBM)
for funding. Pending the creation of the appropriate plantilla positions, the
DOST shall constitute an interim Secretariat within one (1) month from the
effectivity of this Act, through the temporary detail of its personnel.

CHAPTER V
ARTIFICIAL INTELLIGENCE BOARD

SEC. 9. Artificial Intelligence Board. — To carry out the provisions of this
Act, an agency shall be created to be called the Artificial Intelligence Board
(AIB) and shall be composed of the Secretary of the DICT as Chairperson, the
Secretary of the DOST as Co-Chairperson, the Secretary of the Department of
Trade and Industry (DTI), the Director General of the Intellectual Property
Office of the Philippines (IPOPHIL), the Commissioner of the National Privacy
Commission (NPC), and the National Intelligence Coordinating Agency
(NICA), as members.


BYHRH RON

1
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33

35

37
38
39
40
4
42
a3

The AIB shall act unanimously in the discharge of its functions as defined
hereunder:

(a) to exercise regulatory and supervisory authority over the development,
application, and use of AI systems;

(b) to investigate motu proprio or upon report of any person, impose and
collect fines and penalties, initiate and resolve the necessary administrative
action, or initiate the necessary criminal case against the responsible persons for
any violation of this Act;

(c) to issue subpoena and subpoena duces tecum in relation to its
investigation provided that the subpoena shall state the nature and purpose of
the investigation, shall be directed to the person whose attendance is required,
and in the case of a subpoena duces tecum, it shall contain a reasonable
description of books, documents, or things demanded which must be relevant to
the investigation;

(d) to exercise visitorial powers by itself or in coordination with other
competent agencies of the government to ensure the effective implementation of
this Act, which shall include the power to scrutinize the records of AI
companies and laboratories, except trade secrets and proprietary information,
and to inspect their premises. Provided. That trade secrets and proprietary
information shall be defined in this Act's implementing rules and regulations;

(e) to appoint automation auditors with the power to probe and review the
behavior of the algorithm;

(f) to require AI companies and laboratories to submit written or
electronic forms or reports as it may deem necessary and reasonable;

(g) to create, maintain, and regularly update a central database of AI
companies and laboratories;

(h) to conduct a nationwide information campaign with the Philippine
Information Agency (PIA) that shall inform the public on the responsible
development, application, and use of AI systems to enhance awareness among
end-consumers;

(i) to enlist the assistance of any branch, department, bureau, office,
agency or instrumentality of the government, including government-owned and
-controlled corporations, in undertaking any and all operations, which may
include the use of its personnel, facilities and resources for the more resolute


prevention, detection and investigation of offenses and prosecution of offenders;
and

(j) to implement such measures as may be necessary and justified under
this Act;

SEC. 10. Creation of a Secretariat. — The AIB is hereby authorized to
establish a secretariat to be headed by an Executive Director who shall be
appointed by the Council for a term of five (5) years. He or she must be a
member of the Philippine Bar, at least thirty-five (35) years of age and of good
moral character, unquestionable integrity and known probity. All members of
the Secretariat must have served for at least five (5) years in any of the member
agencies and shall hold full-time permanent positions within the said agencies.

CHAPTER VI
NATIONAL CENTER FOR ARTIFICIAL INTELLIGENCE
RESEARCH

SEC. 11. Establishment of the National Center for Artificial Intelligence
Research. — There is hereby established a National Center for Artificial
Intelligence Research (NCAIR), which shall be attached to the DICT for policy
and program coordination and shall be headed by a Board composed of the
following members:

(a) The Secretary of the DICT, who shall act as the Chairperson;

(b) The Secretary of the DOST as co-chairperson;

(c) One (1) representative from the DTI,

(d) One (1) representative from the Department of Labor and
Employment (DOLE);

(e) One (1) representative each from the Department of Education
(DepEd) and the Commission on Higher Education (CHED);

(f) One (1) representative from the Department of Health (DOH);
(g) One (1) representative from the NICA;

(h) One (1) representative from the Department of Computer Science,
University of the Philippines-Diliman;


ON OHRON =

(i) Three (3) members representing professional or industrial artificial
intelligence or information communications technology (ICT) organizations to
be selected by the chairperson from among the list of nominees submitted by
Philippines-based ICT professional organizations; and

(j) Three (3) members representing non-governmental ICT or artificial
intelligence advocacy organizations to be selected by the chairperson from
among the list of nominees submitted by the country's non-governmental ICT
organizations.

The Board may avail itself of the expertise and services of local or
international resource persons who are of known expertise, knowledge, and/or
skill during deliberative sessions.

The Board and its resource persons shall be entitled to such reasonable
per diems, allowances, and honoraria as may be allowed under existing laws,
rules, and regulations.

SEC. 12. Functions of the NCAIR. —- The NCAIR shall be the primary
policy- making and research body concerned with the development of artificial
intelligence and allied emergent technologies in the country. It shall focus on
studying, harnessing, advancing and/or transferring any beneficial Al creations
or systems for the upliftment of Filipino innovators, workers, industries,
businesses, and consumers. It shall also promote the education, training, and
skills-development of Filipinos in this area for employment and professional
advancement.

The NCAIR shall aim to capacitate enterprises to produce new products,
processes, and services using Al. The NCAIR shall endeavor for Al to benefit
every kind of industry to help minimize waste and spoilage, anticipate
operational requirements by the use of predictive technology, enhance business
decision-making through advanced analytics, and any other similar goal the
Center may determine consistent with the declared policies of this Act and the
provisions of Chapter IV.

SEC. Personnel. — The personnel of the NCAIR shall be primarily
staffed by Filipino scientists. The composition and size of such personnel shall
be determined by the chairperson, who may create such offices, divisions, and
units under the NCAIR as he may deem necessary, and for this purpose, the
chairperson is authorized to adopt and implement the corresponding staffing
patterns; Provided, however, that the positions, titles, and salaries of its officials
and personnel shall be in accordance with the position classifications and salary
grades in the Civil Service Rules and the Salary Standardization Act.



CHAPTER VII
INNOVATION AGENDA

SEC. 14. Role of the National Innovation Council. — The National
Innovation Council (NIC) created under Republic Act No. 11293, otherwise
known as the "Philippine Innovation Act", shall give priority to the
development of artificial intelligence in the National Innovation Agenda and
Strategy Development. The NIC shall incorporate in its overall vision the
strategies and objectives outlined in Chapter VIII.

SEC. 15. Government-Industry-Academe Synergy. - To promote synergy
among the government, the private sector, and the academe, the Secretary of
Science and Technology, Director General of the National Economic and
Development Authority. Secretary of Information and Communications
Technology, Secretary of Trade and Industry, Secretary of Labor and
Employment, Chairperson of the CHED, Secretary of Education, and the
Executive Members of the National Innovation Council shall form an Artificial
Intelligence sub-group under the NIC.

CHAPTER VIII
NATIONAL ARTIFICIAL INTELLIGENCE STRATEGY

SEC. 16. Research and Development. — The State shall endeavor to
accelerate innovation with AI as well as master and push its boundaries; it shall
help industries innovate, nurture and support AI startups, and transform
institutions by:

(a) Developing competency in AI research as measured by publications,
patents, and technology disclosures;

(b) Inviting international experts that can bring in new Al technologies
and/or AI startup or business ideas;

(c) Providing funding for AI algorithmic innovations;

(d) Strengthening academe-industry partnerships in AI research and
development;

(e) Incentivizing Higher Educational Institutions to promote AI research
and development internships with local private institutions;


(f) Creating quantifiable measures to track, coordinate, and improve
government services and policies for industries;

(g) Strengthening technology transfer between Higher Educational
Institutions or Research and Development Institutions with industry;

(h) Identifying and prioritizing sector-specific research and development
projects that can maximize the impact of AI research;

(i) Tracking and analyzing the quality and quantity of jobs displaced,
created, and/or transformed as a result of Al academe-industry partnerships;

(j) Identifying and supporting local AI startups;
(k) Developing state-owned venture funds to support AI startups;

(1) Incentivizing and encouraging investors to support promising AI
businesses; and

(m) Supporting or co-hosting Al-themed competitions, events, and
conventions.

SEC. 17. Digitization and Infrastructure. — The State shall improve data
access and data value extraction, and build a robust networked environment by:

(a) Making internet accessible and affordable;
(b) Improving internet quality;

(c) Ensuring that the internet access of enterprises is reliable, secure, and
at least within global averages;

(d) Ensuring government agencies and other public institutions serve as
reliable areas for information access and transfer;

(e) Ensuring that Higher Educational Institutions and Research and
Development Institutions have access to reliable and secure networks;

(f) Making public data open, freely available, and downloadable in
digestible formats for ready analysis;

(g) Building a National Data Center (NDC) with a reliable and robust
infrastructure and data management system;


(h) Encouraging government agencies, research institutions, and top
universities, to maintain their own data centers linked with the NDC;

(i) Working with private institutions to link public and private datasets
that will allow for integrated data search;

(j) Promoting and encouraging data analysis across all functions of
businesses, industries, and government agencies;

(k) Promoting projects that would enable access to more sensitive datasets
given clear social or business value; and

(1) Undertaking extensive and up-to-date training of analysts and data
scientists to extract actionable insights from publicly available data.

SEC. 18. Workforce Development. — The State shall transform education
and nurture future Al talents as well as upskill or reskill workers by:

(a) Promoting data literacy for all;

(b) Ensuring the proper training of teachers in Data Science and
Analytics;

(c) Developing graduate programs centered on data science and Al;

(d) Increasing the number of graduate students in data science, Al, and
business analytics;

(e) Promoting lifelong learning and design learning pathways for out-of-
school individuals;

(1) Incorporating data science and analytics, including data visualization
and storytelling, as general education courses in universities and colleges;

(g) Working with technology companies to provide sufficient computing
resources and equipment to students and teachers;

(h) Incentivizing industries to offer learning and development programs
that improve digital/data literacy;

(i) Developing sector-specific curricula and/or stackable programs with
varying degrees of specialization (low, medium, high);

14


(j) Identifying industry-specific tools needed to help upskill the country's
workforce;

(k) Incentivizing industries to send employees for graduate studies that
focus on research and development towards developing a scientific culture
within organizations; and

(1) Identifying jobs that are vulnerable to automation and other industry
technologies and map the skills that need upgrading or retooling.

SEC. 19. AI Governance Policies. — Employers may adopt AI software
that they may deem useful and/or beneficial in the workplace as an
administrative tool or an integrated or complementary part to process
workflows, Provided, that the use of AI in operations is regulated through the
creation of an AI Governance Policy to provide employees with guidelines for
Al adoption and usage in the workplace, how the collection, use and storage of
data are compliant to the Data Privacy Act of 2012, and other important
information relating thereto.

Such AI Governance Policy may allow employees to use Al in
business processes and workflows, subject to limitations made known to the
employees through said policy. Employees are enjoined to consult their policy
in the event of uncertainty as to a specific application and use of AI and on the
propriety of use thereof.

Employers shall ensure the use of AI software in a legally compliant
manner. They shall see to it that AI Governance Policies are periodically
updated to comply with existing laws and policies.

SEC. 20. Job Displacement Program. — In case a public or private
employee is terminated due to the installation or implementation of artificial
intelligence technologies or systems, rendering his or her position redundant,
the worker affected shall be entitled to separation pay equivalent to at least his
or her one (1) month pay or to at least one (1) month pay for every year of
service, whichever is higher. A fraction of at least six (6) months shall be
considered one (1) whole year. This is without prejudice to any higher benefit as
may be provided by any existing law, rule, agreement, practice, or regulation.

The worker shall also be eligible for any unemployment benefits from the
Social Security System or the Government Service Insurance System.

The DOLE shall create a Job Displacement Program that will aim to
immediately assist and re-employ any workers involuntarily terminated due to

15


the installation or implementation of artificial intelligence technologies or
systems. The NCAIR shall always strive to improve the skills, education, and
knowledge of employees in sectors that are prone to Al replacement to protect
them from any prolonged displacement.

CHAPTER IX
ROLE OF GOVERNMENT AGENCIES

SEC. 21. Whole of Government Approach. - In order to effectively
regulate and/or mitigate the risks and harness the potentials of AI across all
areas of government policy-spanning health, infrastructure, education, training,
energy, communication, industry, science and technology, defense, among
others a "whole of government approach" shall be adopted. This approach shall
facilitate engagement with business, the research development and extension
(RD&E) sector, and the broader community towards ensuring the full and
effective implementation of this Act.

The DOST, DICT, DTI, Department of Agriculture, Department of
Environment and Natural Resources, DOH, Department of Energy, Department
of Transportation, Department of National Defense, Department of the Interior
and Local Government, DepEd, CHED, TESDA, DOLE, Commission on
Human Rights, Department of Justice, shall be responsible for implementing the
country's policies on Al and, as such, shall observe the "whole of government
approach".

Government agencies shall make available for public access, a joint web
portal, that will bear information pertinent to Al regulations.

Government agencies shall submit periodic reports to the Council on their
respective implementation of this Act. Reporting guidelines shall be prepared
by the Council for this purpose.

CHAPTER X
MONITORING AND ENFORCEMENT MECHANISMS

SEC 22. Reports and Disclosures to the AIB. — \n requiring Al companies
and laboratories to submit written or electronic forms or reports pursuant to
Section 8 of this Act, the AIB shall be prohibited from sharing, disclosing, or
making available to the public and other Al entity any information, document,
plan, and report constituting trade secrets, proprietary data, and other legitimate
commercial information which are confidential or privileged in nature.


SEC. 23. Central Database of AI Industry. — The central database, which
shall be open to the public, created by the AIB pursuant to Section 8 of this Act
shall be updated on a monthly basis. It shall include the following information:

(a) Corporate, business, or trade name of the AI industry participant;

(b) Registered trademark or trade name or logo of Al company or
laboratory;

(c) Violations committed and incidents relating to such violations; and
(d) Other relevant information as may be determined by the Council;

Provided, That it shall not include trade secrets and other proprietary
information as may be determined in this Act's implementing rules and
regulations.

For this purpose, the AIB shall coordinate with the Intellectual Property
Office of the Philippines (IPOPHL) for the accurate reporting of trademarks and
tradenames of AI companies or laboratories.

SEC. 24. Prohibited Use of AI System. — It shall be unlawful for any
person to use AI system that shall cause unnecessary, unjustifiable and
indiscriminate moral or pecuniary damage to individuals. The use of lethal
autonomous weapon systems (LAWS) is hereby prohibited.

The development, application, and use of AI to manipulate, exploit or
control any person beyond his or her consciousness to materially distort his or
her behavior in a manner that is likely to cause him or her or another person
physical or psychological harm is prohibited.

AI based social scoring of natural persons and practices that undermine
privacy rights shall also be prohibited.

SEC. 25. Penalties. — Any person who willfully or knowingly does or
who shall aid, permit, or cause to be done any of the acts declared to be
unlawful in the preceding section, or aids, permits, or causes such violation
shall, upon conviction thereof, be punished by imprisonment for not less than
six months or more than six years and with the accessory penalty of perpetual
absolute disqualification from public office if the offender be a public official at
the time of the commission of the offense, and, if the offender is an alien he
shall be subject to deportation proceedings.


SEC. 26. Violations by Juridical Entities. — If the violation is committed
by a corporation, partnership, association, or other juridical entity, the penalty
of imprisonment shall be imposed on the responsible directors or officers
thereof, and the lack of corporate personality cannot be raised as a defense in
case the juridical entity is unregistered.

CHAPTER XI
FINAL PROVISIONS

SEC. 27. Appropriations. — The amounts necessary for the
implementation of this Act shall be included in the annual General
Appropriations Act.

SEC. 28. Implementing Rules and Regulations. - The DOST, shall, in
consultation with the concerned government agencies and stakeholders,
promulgate the implementing rules and regulations of this Act within ninety
(90) days from its effectivity. All guidelines, regulations, and other issuances
mandated to be promulgated in this Act shall be issued within sixty (60) days
from the promulgation of this Act's implementing rules and regulations.

SEC. 29. Construction and Interpretation. — Any doubt in the
interpretation of any provision in this Act shall be interpreted in favor of the
interest of the general public.

SEC. 30. Separability Clause. - If, for any reason, any chapter, section,
or provision of this Act shall be declared unconstitutional, illegal, or invalid,
such parts not affected thereby shall remain in full force and effect.

SEC. 31. Repealing Clause. — All laws, decrees, executive orders,
proclamations, and administrative regulations, or parts thereof inconsistent

herewith are hereby repealed or modified accordingly.

SEC. 32. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in any newspaper of general circulation.

Approved,