Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
EIGHTEENTH CONGRESS 
Third Regular Session 
House Bill No. _____ 
___________________________________________________________________ 
Introduced by Representative PABLO JOHN F. GARCIA     
___________________________________________________________________  
EXPLANATORY NOTE 
The Constitution provides that “Science and technology are essential for national 
development and progress. The State shall give priority to research and development, 
invention, innovation, and their utilization; and to science and technology education, 
training, and services [x x x].”1 It likewise states that “The Congress may provide for 
incentives, including tax deductions, to encourage private participation in programs of 
basic and applied scientific research [x x x].”2
Based on the World Economic Forum’s Readiness for the Future of Production 
Report 2018, the Philippines is not yet prepared to manage the Fourth Industrial 
Revolution (FIRe) as manifested in its weak performance across the drivers of production, 
which include technology and innovation, human resources, global trade and investment, 
institutional framework, sustainable resources, and demand environment, among others.3 
The Fourth Industrial Revolution is a way of describing the blurring of boundaries between 
the physical, digital, and biological worlds.4  
Due to the expansive nature of FIRe, it is a pragmatic and strategic decision to 
focus on its key aspects, especially since resources are limited.5 Of all the FIRe era’s new 
and forthcoming technologies, more than seventy percent of enterprise leaders judged 
Artificial Intelligence (A.I.) to be the most disruptive compared to cloud computing and 
1 Const. art. XIV, § 10. 
2 Const. art. XIV, § 11. 
3 See generally World Economic Forum, Readiness for the Future of Production Report 2018, available 
at http://www3.weforum.org/docs/FOP_Readiness_Report_2018.pdf. 
4
Devon 
McGinnis, 
What 
Is 
the 
Fourth 
Industrial 
Revolution?, 
available 
at 
https://www.salesforce.com/blog/what-is-the-fourth-industrial-revolution-4ir/. 
5 Department of Trade and Industry, Artificial Intelligence, Artificial Intelligence Roadmap, available at 
http://innovate.dti.gov.ph/resources/roadmaps/artificial-intelligence/. 
November 9, 2021
11:24 am
10457


blockchain.6 A.I. could contribute US$15.7 trillion to the global economy by 20307 and 
more than US$92 Billion to the Philippine Economy.8 
This bill seeks to support and institutionalize the Department of Trade and 
Industry’s Artificial Intelligence roadmap to help realize the potentials of A.I. in the 
Philippines: 
The roadmap describes the implementation, infrastructure, and investments 
needed to cover the four (4) important dimensions for A.I. readiness, namely: (1) 
Digitization and Infrastructure, (2) Research and Development, (3) Workforce 
Development, and (4) Regulation. The above dimensions are then supported by 
seven (7) measurable strategic imperatives and forty-two (42) strategic tasks. All 
of which have been defined so as to ensure that we have clear metrics in terms 
of tracking the progress of our efforts towards a competitive A.I. Economy with 
respect to the global arena.9 
We must also answer the call of the International Labour Organization to create a 
human-centred approach for the future of work that focuses on increasing investment in 
people’s capabilities, strengthening the institutions of work and promoting inclusive and 
sustainable economic growth, globally-competitive industries, and full and productive 
employment and decent work for all.10 About 31 percent [of current employment in 
analyzed occupations] are associated with “collapsing” occupations, or occupations where 
jobs have a high likelihood of being replaced by machines with little opportunity for 
transformative digitalization.11 The Philippines is definitely no exception. We must ride this 
wave of inevitable change and prepare accordingly. 
Developing A.I. initiatives will help create jobs, spur innovation, and empower 
various industries. It will also enable all allied technologies to be better than what they 
currently are for the upliftment of every Filipino life. 
In view of the foregoing, the urgent passage of this bill is earnestly sought. 
Rep. PABLO JOHN F. GARCIA 
3rd District, Province of Cebu 
6 Id. citing NewVantage Partners LLC, Big Data Executive Survey 2018. 
7
Supra 
note 
5.
citing
PricewaterhouseCoopers, 
Sizing 
the 
prize, 
available 
at 
https://www.pwc.com/gx/en/issues/data-and-analytics/publications/artificial-intelligence-study.html. 
8 Supra note 5 citing EDBI, Artificial intelligence could deliver a US$1 trillion uplift to Southeast Asia’s 
GDP by 2030, available at https://www.edbi.com/news-room/latest-news/artificial-intelligence-could-
deliver-a-us1-trillion-uplift-to-southeast-asia-s-gdp-by-2030. 
9 Supra note 5. 
10 Internal Labour Organization, The Future of Work in the Philippines: Assessing the impact of 
technological 
changes 
on 
occupations 
and 
sectors, 
available 
at 
https://www.ilo.org/wcmsp5/groups/public/---asia/---ro-bangkok/---ilo-
manila/documents/publication/wcms_762207.pdf. 
11 Id. 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
EIGHTEENTH CONGRESS 
Third Regular Session 
House Bill No. _____ 
___________________________________________________________________ 
Introduced by Representative PABLO JOHN F. GARCIA     
___________________________________________________________________ 
AN ACT 
ESTABLISHING A NATIONAL STRATEGY FOR THE DEVELOPMENT OF 
ARTIFICIAL INTELLIGENCE AND RELATED TECHNOLOGIES, CREATING FOR 
THIS PURPOSE THE NATIONAL CENTER FOR ARTIFICIAL INTELLIGENCE 
RESEARCH, AND FOR OTHER PURPOSES 
Be it enacted by the House of Representatives and the Senate of the Congress of the 
Philippines in session assembled: 
CHAPTER I 
PRELIMINARY PROVISIONS 
Section 1.  Short Title. - This Act shall be known as the “Artificial Intelligence 
Development Act”. 
Section 2.  Declaration of Policy. - Science and technology are essential for 
national development and progress. The State shall give priority to research and 
development, invention, innovation, and their utilization; and to science and 
technology education, training, and service. It is thus the policy of the State to harness 
the potential of Artificial Intelligence to create jobs, empower industries, spur the 
development of the economy, and improve the life of every Filipino. The State shall 
adopt a human-centred approach for the future of work that focuses on increasing 
investment in people’s capabilities, strengthening the institutions of work and 
promoting sustained, inclusive, and sustainable economic growth, and full and 
productive employment and decent work for all. 
Section 3. 
Definition. - For purposes of this Act, Artificial Intelligence (“A.I.”) 
shall mean the simulation of human thought processes in a digital, computerized, or 
artificial model.  
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CHAPTER II 
NATIONAL CENTER FOR ARTIFICIAL INTELLIGENCE RESEARCH 
 
 
Section 4. 
Establishment; Board. - There is hereby established a National 
Center for Artificial Intelligence Research (“NCAIR”), which shall be attached to the 
Department of Science and Technology for policy and program coordination and shall 
be headed by a Board composed of the following members: 
 
(a) 
The Secretary of the Department of Science and Technology, 
who shall act as the chairperson; 
 
(b) 
The Secretary of the Department of Trade and Industry as co-
chairperson; 
 
(c) 
One (1) representative from the Department of Information and 
Communications Technology; 
 
(b) 
One (1) representative from the Department of Labor and 
Employment; 
 
(c) 
One (1) representative each from the Department of Education 
and the Commission on Higher Education; 
 
(d) 
One (1) representative from the Department of Computer 
Science, University of the Philippines-Diliman; 
 
(e)  
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 
 
(f) 
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. 
 


Section 5. 
Function 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 A.I. 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 A.I. The NCAIR shall endeavor for A.I. 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. 
 
Section 6. 
Composition and Size of Personnel of the NCAIR. - 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 III 
INNOVATION AGENDA 
 
Section 7. 
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 IV. 
 
Section 8.  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 Commission on Higher Education, Secretary of Education, and the Executive 
Members of the National Innovation Council shall form an Artificial Intelligence sub-
group under the NIC. 


 
CHAPTER IV 
NATIONAL ARTIFICIAL INTELLIGENCE STRATEGY 
 
 
Section 9. Regulation. - The State shall regulate the A.I. ecosystem and 
ensure that it functions conscientiously, fairly, and ethically by: 
 
(a) 
Ensuring industries and businesses, especially micro, small, and 
medium enterprises, can freely compete in an A.I.-driven and data-driven 
environment; 
 
(b) 
Reviewing and transforming business regulations for ease of 
business, especially in launching new products, platforms, and services; and 
 
(c) 
Establishing a committee of experts in data and A.I. ethics who 
will guard against abuse and misuse of data and A.I. programs. 
 
Section 10.  Research and Development. - The State shall endeavor to 
accelerate innovation with A.I. as well as master and push its boundaries; it shall help 
industries innovate, nurture and support A.I. startups, and transform institutions by: 
 
(a) 
Developing competency in A.I. research as measured by 
publications, patents, and technology disclosures;  
 
(b) 
Inviting international experts that can bring in new A.I. 
technologies and/or A.I. startup or business ideas; 
 
(c) 
Providing funding for A.I. algorithmic innovations 
 
(d) 
Strengthening academe-industry partnerships in A.I. research 
and development; 
 
(e) 
Incentivizing Higher Educational Institutions to promote A.I. 
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 A.I. research; 
 


(i) 
Tracking and analyzing the quality and quantity of jobs displaced, 
created, and/or transformed as a result of A.I. academe-industry partnerships; 
 
(j) 
Identifying and supporting local A.I. startups; 
 
(k) 
Developing state-owned venture funds to support A.I. startups; 
 
(l) 
Incentivizing and encouraging investors to support promising A.I. 
businesses; and 
 
(m) 
Supporting or co-hosting A.I.-themed competitions, events, and 
conventions. 
 
 
Section 11. 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 
 
 
(l) 
Undertaking extensive and up-to-date training of analysts and 
data scientists to extract actionable insights from publicly available data. 
 
Section 12. Workforce Development. - The State shall transform education 
and nurture future A.I. 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 A.I.; 
 
(d) 
Increasing the number of graduate students in data science, A.I., 
and business analytics; 
 
(e) 
Promoting lifelong learning and design learning pathways for out-
of-school individuals; 
 
(f) 
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); 
 
(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 
 
(l) 
Identifying jobs that are vulnerable to automation and other 
industry technologies and map the skills that need upgrading or retooling. 


 
Section 13. Termination and Unemployment Benefits; 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 Department of Labor and Employment shall create a Job Displacement 
Program that will aim to immediately assist and re-employ any workers involuntarily 
terminated due to 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 A.I. replacement 
to protect them from any prolonged displacement. 
 
CHAPTER V 
FINAL PROVISIONS 
 
Section 14. Appropriations. - The amount necessary for the initial 
implementation of this Act shall be sourced from the current appropriations of the 
Departments part of the NCAIR. Thereafter, such sums as may be necessary for the 
continued implementation of this Act shall be included in the annual General 
Appropriations Act. 
 
Section 15. Implementing Rules and Regulations. - The National 
Innovation Council shall issue within sixty (60) days from the effectivity of this Act the 
necessary rules and regulations for the effective implementation of this Act. 
Section 16. Repealing Clause. - All laws, executive orders, proclamations, 
rules, regulations and other issuances or parts thereof which are inconsistent with the 
provisions of this Act are hereby repealed, amended, or modified accordingly. 
 
Section 17. Separability Clause. - If any part or provision of this Act is held 
unconstitutional or invalid, other parts or provisions thereof which are not affected shall 
continue to remain in full force and effect. 
Section 18. Effectivity. - This Act shall take effect fifteen (15) days following 
completion of its publication in at least two (2) newspapers of general circulation. 
 
Approved,