reRepublic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. _________ 
Introduced by:  REP. SALVADOR A. PLEYTO, SR. 
EXPLANATORY NOTE 
Artificial Intelligence (AI) presents a transformative opportunity to 
accelerate economic growth, enhance public services, and address complex 
societal challenges. However, the rapid advancement and adoption of AI 
systems also introduce significant risks related to data privacy, algorithmic 
bias, accountability, and ethical use.  
There is a need for a comprehensive legal framework that balances the 
promotion of innovation with the imperative to protect public welfare and 
ensure responsible development. 
This bill seeks to establish a clear and progressive policy for AI in the 
Philippines. It proposes the creation of a specialized regulatory body, the 
Philippine Artificial Intelligence Commission (PAIC), which will be responsible 
for overseeing AI governance.  
The bill also provides for robust support mechanisms for AI research 
and development, while simultaneously instituting ethical guidelines, data 
protection standards, and accountability measures to mitigate potential harm. 
By creating a forward-looking and adaptable regulatory environment, the 
Philippines can harness the full potential of AI to build a smarter, more 
inclusive, and more competitive nation. 
In view of the foregoing, the immediate passage of this bill is hereby 
earnestly sought. 
SALVADOR A. PLEYTO, SR.       
August 11, 2025
3:22 pm
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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. _________ 
Introduced by:  REP. SALVADOR A. PLEYTO, SR. 
AN ACT PROMOTING THE DEVELOPMENT AND REGULATION OF 
ARTIFICIAL INTELLIGENCE IN THE PHILIPPINES, CREATING FOR THE 
PURPOSE THE PHILIPPINE ARTIFICIAL INTELLIGENCE COMMISSION, 
AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled: 
ARTICLE I: GENERAL PROVISIONS 
Section 1. Short Title. - This Act shall be known as the "Philippine 
Artificial Intelligence Act of 2025." 
Sec. 2. Declaration of Policy. - It is the policy of the State to foster a 
national environment conducive to the development, adoption, and ethical 
use of Artificial Intelligence. The State shall:  
a. Promote the Philippines as a hub for AI research, development, and
innovation; 
b. Ensure that AI systems are developed and used in a manner that
respects human dignity, fundamental rights, and democratic values;
c. Establish a clear and flexible regulatory framework to govern AI
systems, with a focus on risk-based oversight;
d. Protect consumers and citizens from the potential harms of AI,
including discrimination, privacy violations, and misinformation;
e. Encourage public-private partnerships to facilitate the growth of the
AI sector and address AI-related challenges.
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Sec. 3. Definition of Terms. - For the purpose of this Act, the following 
terms shall be defined as follows:  
 
a. Artificial Intelligence (AI) - refers to a system with the ability to process 
information, recognize patterns, make decisions, or generate content 
using algorithms and models, often with minimal human intervention.  
 
b. AI System - refers to a machine-based system that, for explicit or 
implicit objectives, infers from the input it receives and uses models to 
generate outputs such as predictions, content, recommendations, or 
decisions that can influence physical or virtual environments.  
 
c. High-Risk AI System - refers to an AI System that poses a significant 
risk of harm to the health, safety, or fundamental rights of individuals, 
as defined by the Philippine Artificial Intelligence Commission.  
 
d. AI Developer - refers to any person, company, or entity that creates or 
modifies an AI System.  
 
e. AI User - refers to any person, company, or entity that deploys or uses 
an AI System.  
 
f. Algorithmic Transparency - refers to the principle that the internal 
workings of an AI System, including its data sources, logic, and decision-
making processes, should be understandable and explainable. 
 
ARTICLE II: THE PHILIPPINE ARTIFICIAL INTELLIGENCE 
COMMISSION (PAIC) 
 
Sec. 4. Creation of the Philippine Artificial Intelligence Commission. - There 
is hereby created an independent body to be known as the Philippine Artificial 
Intelligence Commission (PAIC), hereinafter referred to as the "Commission," 
which 
shall 
be attached 
to 
the Department 
of 
Information 
and 
Communications Technology (DICT) for administrative purposes only. 
 
Sec. 5. Powers and Functions. - The Commission shall be the primary 
government entity responsible for the oversight and regulation of AI in the 
Philippines. Its powers and functions shall include, but not be limited to:  
 
a. Formulating and implementing a National AI Strategy and Roadmap;  
 
b. Developing, publishing, and updating ethical guidelines and 
standards for the development and use of AI Systems;  
 
c. Classifying AI Systems as High-Risk or Low-Risk and establishing  
   corresponding regulatory requirements;  
 
d. Conducting impact assessments and audits on High-Risk AI Systems;  
 


 
e. Promoting and funding AI-related research and development through  
    grants, subsidies, and incentives;  
 
f. Collaborating with educational institutions to develop AI-focused   
curricula and training programs;  
 
g. Imposing penalties for violations of this Act and its implementing rules  
and regulations; and  
 
h. Serving as the central repository for AI-related data and information 
 
 
ARTICLE III: AI DEVELOPMENT AND REGULATION 
 
Sec. 6. Promotion of AI Development. - The State shall provide incentives 
to AI Developers, including, but not limited to:  
 
a. Tax incentives for investments in AI research and development;  
 
b. Subsidies for AI startups and small and medium-sized enterprises 
(SMEs);  
 
c. Creation of AI-focused incubators, accelerators, and innovation hubs; 
and  
 
e. Facilitation of access to public datasets for AI training, subject to 
privacy safeguards. 
 
Sec. 7. Ethical Principles and Data Privacy. - All AI Developers and AI 
Users shall adhere to the following principles:  
 
a. Human Oversight and Control: AI Systems should remain subject to 
human oversight, and humans must be ultimately responsible for 
decisions made by or with the assistance of AI.  
 
b. Privacy by Design: AI Systems shall be developed and deployed with 
data privacy and security measures as a core design principle, in full 
compliance with the Data Privacy Act of 2012.  
 
c. Algorithmic Transparency and Explainability: For High-Risk AI 
Systems, Developers and Users shall ensure that their algorithms are 
transparent, auditable, and their outputs are explainable to a reasonable 
degree.  
 
d. Fairness and Non-Discrimination: AI Systems shall be designed to be 
free from inherent bias and shall not perpetuate or reinforce 
discrimination based on race, gender, religion, or other protected 
characteristics. 


Sec. 8. Accountability and Liability.  
 
a. For High-Risk AI Systems: The AI Developer or AI User shall be held 
accountable for any harm, damage, or discrimination caused by the 
system, unless it can be proven that the harm was caused by a user's 
gross negligence or misuse.  
 
b. Audit Trail: AI Systems, particularly High-Risk ones, shall be required 
to maintain a comprehensive audit trail of all data used, decisions made, 
and modifications to the system. 
 
Sec. 9. Penalties. - Any person, company, or entity found in violation of 
this Act or the rules and regulations issued by the Commission shall be 
subject to the following penalties:  
 
a. Administrative fines ranging from One Hundred Thousand Pesos 
(₱100,000.00) to Ten Million Pesos (₱10,000,000.00), depending on the 
severity of the violation;  
 
b. Suspension or revocation of business permits, licenses, or government 
contracts; and  
 
c. Other such penalties as may be prescribed by the Commission. 
 
 
ARTICLE IV: FINAL PROVISIONS 
 
Sec. 10. Implementing Rules and Regulations (IRR). - Within ninety (90) 
days from the effectivity of this Act, the PAIC, in coordination with the DICT 
and other relevant government agencies, shall formulate the necessary rules 
and regulations to implement the provisions of this Act. 
 
Sec. 11. Separability Clause. - If any provision or part of this Act is 
declared unconstitutional or invalid, the other provisions not affected thereby 
shall remain in full force and effect. 
 
Sec. 12. Repealing Clause. - All laws, presidential decrees, executive 
orders, proclamations, and administrative regulations or parts thereof 
inconsistent with this Act are hereby repealed or modified accordingly. 
 
Sec. 13. Effectivity. This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in a newspaper of general circulation. 
 
 
Approved,