Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. MIGUEL LUIS R. VILLAFUERTE, HON. VINCENZO 
RENATO LUIGI R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. HORIBATA, AND 
HON. TERRY L. RIDON 
EXPLANATORY NOTE 
According to the Massachusetts Institute of Technology, artificial intelligence (AI) 
refers to the ability of computers to imitate cognitive human functions such as learning and 
problem-solving.1 AI primarily operates through three fundamental components that include 
data, algorithms, and computing power.2 Across various industries, the use of AI has become 
immensely popular. It has been highly beneficial in the innovation of cellular phones, vehicles, 
social media platforms, banking, cybersecurity, e-commerce, education, health, and 
agriculture. Generally, AI holds promise for significant advancements in various aspects of 
human life. 
However, AI also presents a wide array of risks, including labor displacement, privacy 
and security violations, misinformation/disinformation, potential bias and discrimination of 
algorithms, and intellectual property infringement.3 AI has also been linked to the proliferation 
of deepfakes aimed at manipulating and deceiving the public, which can have serious political 
and social implications. 
 Recognizing the extent of harm that AI misuse poses to the public welfare, Department 
of Science and Technology (DOST) Secretary Renato U. Solidum Jr. shared that the DOST 
has proposed a National AI Strategy for the Philippines (NAIS Ph). NAIS Ph outlines the 
country’s AI Program Framework and is an attempt to create a national strategy where AI 
“powers inclusive innovation, strengthens governance, uplifts communities, and drives 
globally competitive industries”.4 NAIS Ph also lays down implementation strategies, roles of 
relevant government agencies, and its focus areas that include infrastructure, workforce, 
innovation, data governance and policy, and AI deployment.5 Through the AI Program 
Framework, the country will be guided in developing, deploying, and governing AI in the 
country until 2028. Secretary Solidum further added that innovation should always be 
accessible, ethical, and responsive to the material needs of society. In May 2025, President 
Bongbong Marcos approved NAIS Ph. 
1 Piloto, C. Artificial Intelligence vs Machine Learning: What’s the difference? 
.https://professionalprograms.mit.edu/blog/technology/machine-learning-vs-artificial-intelligence/ 
2 Breaking down the advantages and disadvantages of artificial intelligence 
.https://www.ibm.com/think/insights/artificial-intelligence-advantages-disadvantages 
3 Caballar, R.D. (2024) 10 AI dangers and risks and how to manage them. 
https://www.ibm.com/think/insights/10-ai-dangers-and-risks-and-how-to-manage-
them#:~:text=03%20September%202024,AI%20governance%20an%20enterprise%20priority 
4 Marfal, M. (2025) DOST builds on “AI” national strategy 
https://www.dost.gov.ph/knowledge-resources/news/86-2025-news/3989-dost-builds-on-ai-national-strategy.html 
5Presidential Communications Office (2025) PBBM: Make best use of AI for national dev’t 
. https://pco.gov.ph/news_releases/pbbm-make-best-use-of-ai-for-national-devt/ 
July 31, 2025
2:25 pm
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According to the Government AI Readiness Index published by Oxford Insights in 
2024, the Philippines ranked 56th out of 188 countries. This is a slight improvement from its 
65th place in 2023. The said index seeks to provide insights on the effective and responsible 
integration of AI into public services across the three pillars – government, technology, and 
data and infrastructure.6 
Indeed, the executive branch’s effort to adapt its policies to the fast-paced evolution of 
AI must be complemented by Congress to ensure the country’s AI readiness. Section 10, 
Article XIV of the 1987 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. It shall support indigenous, appropriate, and self-reliant scientific and 
technological capabilities, and their application to the country’s productive systems and 
national life.” 
In line with this constitutional mandate and in response to the country’s needs, this bill 
seeks to: 
●
Lay down the guiding principles and Bill of Rights on developing, applying, and
using artificial intelligence (AI) systems.
●
Create the Philippine Council on Artificial Intelligence, which will serve as a
policy-making and advisory body of experts under the Department of Information
and Communications Technology (DICT).
●
Establish an Artificial Intelligence Board (AIB), composed of the Secretary of the
DICT as Chairperson, the Secretary of the Department of Science and
Technology (DOST) as Co-Chairperson, the Secretary of the Department of
Trade and Industry, the Director General of the Intellectual Property Office of the
Philippines (IPOPHIL), the Commissioner of the National Privacy Commission,
and the National Intelligence Coordinating Agency, as members.
●
Establish the National Center for Artificial Intelligence Research, which will be an
attached agency of the DOST primarily responsible for policy and program
coordination.
●
Mandate the creation of an Artificial Intelligence subgroup under the National
Innovation Council to promote synergy amongst the government, private sector,
and the academe on the development of AI.
●
Define the national AI strategy with special focus on research and development,
digitization and infrastructure, workforce development, AI governance policies,
and job displacement.
●
Adopt a whole-of-government approach to facilitate engagement with the
research development and extension sector, business, and the public for the
law’s full and effective implementation.
●
Mandate the AIB to update the central database of the AI industry monthly and
its coordinate with the IPOPHL for the accurate reporting of trademarks and trade
names of companies and laboratories engaged in AI.
●
Identify prohibited acts on the use of AI systems and its corresponding penalties.
In view of the foregoing, the immediate passage of this bill is earnestly sought. 
6 BusinessWorld. (2024, December 27). Philippines improves in Government AI Readiness Index.
https://www.bworldonline.com/infographics/2024/12/27/643555/philippines-improves-in-government-ai-readiness-index/ 


HON. MIGUEL LUIS R. VILLAFUERTE 
HON. VINCENZO RENATO LUIGI R. VILLAFUERTE 
HON. TSUYOSHI ANTHONY G. HORIBATA 
HON. TERRY L. RIDON 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. MIGUEL LUIS R. VILLAFUERTE, HON. VINCENZO 
RENATO LUIGI R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. HORIBATA, AND 
HON. TERRY L. RIDON 
AN ACT ESTABLISHING A REGULATORY FRAMEWORK FOR A ROBUST, RELIABLE, 
AND TRUSTWORTHY DEVELOPMENT, APPLICATION, AND USE OF ARTIFICIAL 
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:  
SECTION 1. Short Title. – This Act shall be known as the “Artificial Intelligence (Al) 
Development and Regulation Act.” 
SECTION 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. 
SECTION 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 (AI) refers to the simulation of human intelligence in machines that
are programmed to think like humans and mimic their actions;
(d) Artificial intelligence ecosystem refers to a group of Al systems that 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;
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(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 AI 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 
 
(l) 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 
 
SECTION 4. Principles. – The development, application, and use of artificial intelligence (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 Al must 
contribute to the developmental goals of the country; 
 
(b) Human-centered values and fairness. – Al systems must treat people with dignity and 
respect; 
 
(c) Robustness, security, and safety. – Al must be reliable and safe and ensure that the 
public is protected from errors in processing and outcomes; 
 
(d) Accountability. – Al system must provide disclosure of information that enables 
monitoring, checking or criticism and allow automation auditing to ensure that entities 
deploying Al technologies are accountable for their consequences; 
 
(e) Transparency and Explainability. – Policies, rules and regulations governing Al 
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. – Al systems must be transparent; accurate and reliable; provide augmentation; 
and protect privacy. 
 
CHAPTER III 
AI BILL OF RIGHTS 
 
SECTION 5. Bill of Rights. – The development, application, and use of Al systems shall be 
guided by the following rights of every Filipino: 
 
(a) Right to Protection from Unsafe and Ineffective Al 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 
Al systems shall seek permission and respect the decisions of every person regarding 
collection, use, access, transfer, and deletion of 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 shall only be used to justify the 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 Al 
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 Al'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 
 
SECTION 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. 
 
 
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 (TWGs) 
as may be 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 Al 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. 
 
SECTION 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 Al 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 Al; 
 
(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 Al 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 Al ecosystem conscience by strengthening intellectual property and data 
protection measures; 
 
(l) In consultation with the affected sectors, establish an Al 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 (HEls), 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; 
 
(o) Provide programmatic direction in the deployment of Al in government agencies' 
programs and projects; 
 
(p) Ensure an efficient balance in the regulation of Al and consumer protection to facilitate 
the growth of emerging business models brought about by Al 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) Devise appropriate mechanisms to protect workers and professionals from potential 
job losses brought about by automation and Al; 
 
(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 Al; 
 
(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. 
 
SECTION 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 
 
SECTION 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. 
 
 
The AlB 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 Al 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 Al 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 behavior of the 
algorithm; 
 
(f) to require Al 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 Al 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 Al systems to enhance awareness among end-consumers; 
 
(i) to enlist the assistance of any branch, department, bureau, office, agency or 
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; 
 
SECTION 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  
 
SECTION 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; 
 
(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 Philippine-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 ICТ 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 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.  
 
SECTION 13. 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  
 
SECTION 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.  
 


SECTION 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  
 
SECTION 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 who can bring in new AI technologies and/or Al 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 AI academe-industry partnerships;  
 
(j) Identifying and supporting local AI startups;  
 
(k) Developing state-owned venture funds to support AI startups;  
 
(l) Incentivizing and encouraging investors to support promising AI businesses; and  
 
(m) Supporting or co-hosting Al-themed competitions, events, and conventions.  
 
SECTION 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  
 
(l) Undertaking extensive and up-to-date training of analysts and data scientists to extract 
actionable insights from publicly available data.  
 
SECTION 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;  
 
(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 literacу;  
 
(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 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 Al Governance Policy may allow employees to use AI 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.  
 
SECTION 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 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 
 
SECTION 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  
 
SECTION 22. Reports and Disclosures to the AlB. – In requiring AI 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. 
 
SECTION 23. Central Database of Al Industry. – The central database, which shall be open 
to the public, created by the AlB 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 Al 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 AlB shall coordinate with the Intellectual Property Office of the 
Philippines (IPOPHL) for the accurate reporting of trademarks and tradenames of Al 
companies or laboratories. 
 
SECTION 24. Prohibited Use of Al 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.  
 


SECTION 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. 
 
SECTION 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 
 
SECTION 27. Appropriations. – The amounts necessary for the implementation of this Act 
shall be included in the annual General Appropriations Act. 
 
SECTION 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. 
 
SECTION 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. 
 
SECTION 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. 
 
SECTION 31. Repealing Clause. – All laws, decrees, executive orders, proclamations, and 
administrative regulations, or parts thereof, inconsistent herewith are hereby repealed or 
modified accordingly. 
 
SECTION 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,