Republic of the Philippines
HOUSE OF REPRESENTATIVES

Quezon City

TWENTIETH CONGRESS
First Regular Session

House Bill No.3 688

Introduced by the Hon. Ferdinand Alexander A. Marcos

AN ACT PROMOTING THE DEVELOPMENT AND REGULATION
OF ARTIFICIAL INTELLIGENCE IN THE PHILIPPINES

EXPLANATORY NOTE

The 1987 Philippine Constitution states 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 xxx” (Art. XIV, Sec. 10). More to the point, our fundamental charter mandates
that “The State shall regulate the transfer and promote the adaptation of technology from all
sources for the national benefit” xxx (Art. XIV, Sec. 12)

With the advent of ChatGPT and other forms of artificial intelligence (AI), doing work,
school and even religious activities have never been the same. AI has potential for tremendous
benefits - it can process massive amounts of data in seconds, automate repetitive tasks and even
generate strategic insights. However, its use is also subject to abuse, even incalculable harm,
as we have seen in the dissemination of fake news, the phenomenon of deepfakes, etc. Thus, it
behooves Congress to set the ground rules for this revolutionary technological development. It
has been reported that Europe has come up with its own regulatory guidelines on the matter
while the ASEAN is still trying to come up with its own roadmap.

In the 19" Congress, a number of measures on the subject of AI were filed by
Representatives Barbers, Luistro, et al. The instant bill is a renewed attempt to provide for the
regulatory framework or environment for artificial intelligence.

In view of the foregoing, the early approval of this bill is highly recommended.

FERDINAND ALEXANDER A. MARCOS
First District, Ilocos Norte


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

TWENTIETH CONGRESS
First Regular Session

House Bill No. 3688

Introduced by the Hon. Ferdinand Alexander A. Marcos

AN ACT PROMOTING THE DEVELOPMENT AND REGULATION OF
ARTIFICIAL INTELLIGENCE IN THE PHILIPPINES

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

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

SEC. 2. Declaration of Policy. — It is hereby declared the policy of the State to promote the
development of artificial intelligence in the Philippines, while ensuring that its development
and deployment are aligned with national priorities, socially responsible, and respectful of
human rights. The State recognizes the potential of artificial intelligence to contribute to
economic growth, social welfare, and national security, and commits to promote its
development in a way that is transparent, accountable, and responsive to the needs of the
people.

SEC. 3. Purpose. — The purpose of this Act is to promote and regulate the deployment of
artificial intelligence (Al) technologies in the Philippines to ensure that Al systems are
developed, deployed, and used in a manner that is consistent with ethical principles, protects
human rights and dignity, and serves the public interest. This Act aims to achieve the following
objectives:

Promote the development of Al technologies through research and development,
innovation, and entrepreneurship;

(b) Protect the rights and welfare of individuals and communities affected by Al

technologies;

(c) Ensure that Al technologies are developed, deployed, and used in a manner that is
transparent, accountable, and fair;

Develop the necessary infrastructure and human capital to support the development and
deployment of Al technologies in the Philippines; and

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(¢) Foster international cooperation and collaboration in the development and use of Al
technologies.

SEC. 4. Definitions. — For the purposes of this Act:

(a) Artificial Intelligence (Al) refers to ability of machines or computer programs, systems
or software that are designed to perform tasks that simulate human intelligence, such as
reasoning, learning, perception, and problem-solving.

(b) Al 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.

(c) Al developer refers to any person, entity, or organization that develops Al technologies
including software and hardware. The development of Al technologies includes, among
others, the design, development, testing, or deployment of Al systems.

(@) Al user refers to any person, entity, or organization that utilizes or benefits from Al
systems, including but not limited to government agencies, private companies, and
individuals.

(©) Al regulator refers to any government agency or regulatory body that is responsible for
overseeing the development and deployment of Al systems.

(f) Access refers to the instruction, communication with, storing data in, retrieving data
from, or otherwise making use of any resources of a computer system or
communication network.

(g) Alteration refers to the modification or change, in form or substance, of an existing
‘computer data or program.

(h) Computer refers to an electronic, magnetic, optical, electrochemical, or other data
processing or communications device, or grouping of such devices, capable of
performing logical, arithmetic, routing or storage functions, and which includes any
storage facility or equipment, or communications facility or equipment directly related
to or operating in conjunction with such device. It covers any type of computer device,
including devices with data processing capabilities like mobile phones, smart phones,
computer networks and other devices connected to the internet.

(i) Computer program or Application refers to a set of instructions executed by the
computer to achieve intended results.

() Computer system refers to any device or group of interconnected or related devices, one
or more of which, pursuant to a program, performs automated processing of data. It
covers any type of device with data processing capabilities, including, but not limited
to, computers and mobile phones. The device consisting of hardware and software may
include input, output and storage components, which may stand alone or be connected
to a network or other similar devices. It also includes computer data storage devices or
media.

(kK) Critical infrastructure refers to the computer systems, and/or networks, whether
physical or virtual, and/or the computer programs, computer data and/or traffic data that
are so vital to this country that the incapacity or destruction of or interference with such


system and assets would have a debilitating impact on security, national or economic
security, national public health and safety, or any combination of those matters.

() Cybersecurity refers to the collection of tools, policies, risk management approaches,
actions, training, best practices, assurance and technologies that can be used to protect
the cyber environment, and organization and user's assets.

(m) Transparency means the quality or state of being open, accountable, and easily
understood.

SEC. 5. Establishment of Al Development Authority (AIDA). ~ An artificial intelligence body
to be known as Artificial Intelligence Development Authority (AIDA) is hereby created and
established to oversee the development and deployment of Al technologies, ensuring
compliance with Al ethics principles and guidelines, and protecting the rights and welfare of
individuals and communities affected by Al technologies.

Composition, The Artificial Intelligence Development Authority (AIDA), under the
administrative supervision of the Office of the President, shall be governed by a Board of
Trustees composed of the following members, in an ex-officio capacity:

1. Executive Director of the Department of Science and Technology — Information and
Communications Technology Office (DOST-ICTO) as Chairman

2. Head of the ICT Industry Development Bureau of the Department of Information and
Communications Technology (DICT-IIDB) as Vice-Chairman

3. Head of the National Computer Center

4. Head or duly-designated representative of the following offices,

(a). National Privacy Commission (NPC)
(b). Department of Justice — Office of Cybercrime (DOJ-OC)

(c). National Intelligence Coordinating Agency (NICA)

(d). Armed Forces of the Philippine (AFP) Cyber Command

(e). Philippine National Police AntiCybercrime Group (PNP-ACG)

(. National Telecommunications Commission (NTC)

(g). Securities and Exchange Commission (SEC)

(h). National Privacy Commission (NPC), and

(i). One (1) representative from the private sector who should be expert in the fields of
information technology specializing artificial intelligence, law, ethics, social science,
and other relevant disciplines, and, further,

(j). One (1) representative from the academe who should be expert in the fields of
information technology specializing artificial intelligence, law, ethics, social science,
and other relevant disciplines.

Meetings of the Board. The Board of Trustees of the Artificial Intelligence Development
Authority (AIDA) shall meet once a week or as often as necessary at the discretion of the
Chairman or at the call of any three (3) other members. The presence of majority of the
permanent members and of the ex-officio members shall constitute a quorum.


SEC. 6. Secretariat. — The AIDA Secretariat serves as the implementing arm of the Board and
shall be responsible for the efficient and effective enforcement of all the provisions of this Act.
It shall be headed by the Executive Director and two (2) Deputy Executive Directors. The
Board shall recommend to the President of the Philippines the appointment of an Executive
Director who shall be the Secretary of the Board and at the same time the executive officer
having direct control and supervision of the AIDA. He/she must possess adequate knowledge,
training, and experience for at least seven (7) years in the field of information technology and
recently on artificial intelligence.

‘Two Deputy Executive Directors for administration and for operations shall also be appointed
by the President upon recommendation of the Board. They shall possess the same qualifications
as those of the Executive Director. They shall receive a salary corresponding to their position
as prescribed by the Salary Standardization Law as a Career Service Officer.

SEC. 7. Regulation of Al Development and Deployment. The AIDA shall have the general
mandate and power to oversee the development and deployment of Al technologies, ensure
compliance with Al ethics principles and guidelines, and protect the rights and welfare of
individuals and communities affected by Al technologies. Specifically, it shall be responsible
for:

(a) Developing a national Al development and regulation strategy that aligns with national
priorities and international standards including but not limited to requirements for Al
impact assessments, data protection, and transparency in Al decision-making.

(b) Conducting research and development activities to promote the advancement of Al
technology in the Philippines.

(©) Providing guidance and support to Al developers and users on ethical and responsible
development and deployment of Al technologies in the Philippines.

(a) Establishing standards and guidelines for legal, ethical and responsible Al development,

use and deployment, and enforcing them by conducting investigations and penalizing

violations of said Al ethics principles, standards, and guidelines.

Establishing licensing and certification requirements for Al developers and deployers

so that they shall be required to register with AIDA and comply with its regulations

and guidelines. Failure to register or comply with the regulations and guidelines of the

Council shall be considered a violation of this Act and subject to applicable

administrative penalties and sanctions.

Ensuring that personal data collected, used, and processed by Al systems are protected

in accordance with Republic Act 10173 otherwise known as the Data Privacy Act of

2012 and other relevant laws and regulations.

(0) Developing data security and cybersecurity standards for Al systems to protect against

cyber-attacks and hacking.

Establishing a mechanism for reporting and addressing complaints and grievances

related to the deployment of Al systems in the Philippines.

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(h) Monitoring and evaluating the development and deployment of Al systems in the
Philippines and, except when national security and interest is involved, it shall
regularly report to the public on the state of Al development and its impact on society.

SEC. 8. Promotion of Al Development, — The AIDA shall establish programs and initiatives
that promote Al research and development, innovation, and entrepreneurship, with a focus on
developing Al technologies that address the country's most pressing social and economic
challenges. It shall promote the development of Al in the country through employment of any
or combination of the following measures:

(a) Providing funding and support for Al research and development activities.
(6) Encouraging partnerships between academic institutions, private companies, and
government agencies to promote Al development.

(©) Promoting the adoption of Al in government agencies and private companies to
improve efficiency and productivity.

(d) Providing incentives for Al developers and users who adhere to ethical and responsible
Al development and deployment practices.

(e) Promoting the development of Al talent and skills in the Philippines through education

and training programs.

SEC. 9. International Cooperation and Collaboration. — The AIDA shall undertake
international cooperation and collaboration in the development and use of Al technologies,
including through partnerships with other countries, international organizations, and the private
sector. It shall participate in international efforts to develop global norms and standards for the
development and use of Al technologies and shall work to ensure that these norms and
standards are consistent with Philippine laws, regulations, and values.

SEC. 10. Appropriations. The government shall allocate funds for the implementation of this
Act, including the establishment and operation of the Al regulatory authority or commission
and the promotion of Al research and development.

SEC. 11. Penal Provisions. — Any person or entity that violates the provisions of this Act,
including the Al ethics principles and guidelines, shall be penalized in accordance with the
penalties provided for under existing laws and regulations.

SEC. 12. Implementing Rules and Regulations. — The Al regulatory authority shall
promulgate the necessary rules and regulations for the implementation of this Act, in
consultation with relevant stakeholders.

SEC. 13. Separability Clause. — \f any provision of this Act is declared unconstitutional or
invalid, the other provisions not affected thereby shall remain in full force and effect.


SEC. 14. Repealing Clause. — All laws, decrees, orders, rules and regulations, or parts thereof,
which are inconsistent with the provisions of this Act, are hereby repealed, amended, or
modified accordingly.

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

Approved,