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DATE

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Republic of the Philippines + TIME remem"
HOUSE OF REPRESENTATIVES ‘ev
Quezon City ‘4

TWENTIETH CONGRESS
First Regular Session

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House Bill No._73

Introduced by Hon. Bernadette S. Barbers

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

EXPLANATORY NOTE

Artificial Intelligence (Al) is rapidly transforming the global economy, with its potential to
enhance productivity, improve the delivery of public services, and drive economic growth.
While the Philippines recognizes the importance of Al in the development of the country,
the rapid pace of technological advancement in Al also poses risks and challenges that
must be addressed to ensure that the benefits of Al are maximized, and its negative
impacts are minimized if not avoided.

This bill entitled "An Act Promoting the Development and Regulation of Artificial
Intelligence in the Philippines" seeks to address the potential risks and challenges by
providing for a comprehensive framework for the development and regulation of Al in the
Philippines. It aims to foster an environment that promotes the responsible and ethical
development of Al, while also ensuring that its deployment is aligned with the values and
interests of the Filipino people.

In a nutshell, the proposed legislation defines Al as an umbrella term that encompasses
various forms of technology, including machine learning, deep learning, neural networks,
and natural language processing. It outlines the principles of responsible Al development,
which include transparency, fairness, accountability, and privacy. It likewise requires
organizations that develop or deploy Al technologies to adhere to these principles and to
conduct risk assessments and impact analyses before deploying their technologies.

Moreover, it includes provisions to protect the privacy and personal data of individuals, to
prevent discrimination and bias in Al technologies, and to ensure that Al systems are safe
and secure. It further requires organizations to be transparent about their use of Al and
to provide meaningful explanations for the decisions made by Al systems.

To undertake the foregoing tasks, duties and responsibilities, the proposed measure
establishes an agency to be known as the Artificial Intelligence Development Authority
(AIDA) which will be responsible for the development and implementation of a national Al
strategy. The strategy will promote research and development in Al, support the growth
of Al-related industries, and enhance the skills of the Filipino workforce in the field of Al
The AIDA will also be tasked with regulating the development and deployment of Al


technologies in the Philippines, ensuring that these technologies are aligned with the
principles of responsible Al development,

It is hoped that this bill will enable the Philippines to maximize the benefits of Al while
minimizing its negative impacts, and to position the country as a leader in the responsible
and ethical development of this transformative technology.

HON. BERNADETTE S. BARBERS
2" Disifict, Surigao del Norte


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS
First Regular Session

House Bill No. _7:3.

Introduced by Hon. Bernadette S. Barbers

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

Be it enacted by the Senate and the 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 of the Philippines."

SEC. 2. Declaration of Policy. \t 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:

(a) 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.

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

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


SEC. 4. Definitions. For the purposes of this Act, the following terms shall be
defined as follows:

(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.

(d) 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.

(e) 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.

(j) 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

(k) 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 permanent and ex-officio members, as follows:

1. Permanent Board Members. The permanent members include the following:

a. Executive Director of the Department of Science and Technology - Information
and Communications Technology Office (DOST-ICTO) as Chairman
b. Head of the ICT Industry Development Bureau of the Department of
Information and Communications Technology (DICT-IIDB) as Vice-Chairman
. Head of the National Computer Center.
One (1) representative from the private sector who should be experts in the
fields of information technology specializing artificial intelligence, law, ethics,
social science, and other relevant disciplines.
. One (1) representative from the academe who should be experts in the fields
of information technology specializing artificial intelligence, law, ethics, social
science, and other relevant disciplines.

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2. Ex-Officio Members. The ex-officio members include the heads or their deputies,
assistants, or next-in-rank of the following agencies:

National Privacy Commission (NPC)
Department of Justice-Office of Cybercrime (DOJ-OC)

. National Intelligence Coordinating Agency (NICA)

Armed Forces of the Philippines (AFP) Cyber Command

. Philippine National Police Anti-Cybercrime Group (PNP-ACG)

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f. National Telecommunications Commission (NTC)
g. Securities and Exchange Commission
h. Such other offices, agencies and/or units, as may be necessary

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.

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

(d) 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.

(e) 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.

(f) 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.

(g) Developing data security and cybersecurity standards for Al systems to protect
against cyber-attacks and hacking.

(h) Establishing a mechanism for reporting and addressing complaints and grievances
related to the deployment of Al systems in the Philippines.

(i) 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.

(b) Encouraging partnerships between academic institutions, private companies, and
government agencies to promote Al development.

(c) 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 its publication
in the Official Gazette or in a newspaper of general circulation.

Approved,