Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
NINETEENTH CONGRESS
First Regular Session
HoUSEBILLNo.     7983
Introduced  by:  Hon.  Keith  Micah "Atty.  Mike" D.L. Tan
AN ACT
PROVIDING A NATIONAL STRATEGY FOR THE DEVELOPMENT OF ARTIFICIAL
INTELLIGENCE, CREATING  FOR THE PURPOSE THE NATIONAL CENTER FOR
ARTIFICIAL INTELLIGENCE RESEARCH, AND APPROPRIATING FUNDS
THEREFOR
EXPLANATORY NOTE
ln   line   with   the   report   ``Developing   an   AI   Governance   Framework   for   the
Philippines:    A    Report   of    Preliminary    Stakeholder    Consultations    and    Review   of
Literature",   this   bill   seeks   to   strengthen   the   country's   innovation   ecosystem   and
research practices towards the development of national innovation priority areas.
The  report specifically  recommends  "...the  creation  of the  National  Center for AI
Research  (NCAIR) that would  serve as the country's hub for AI  Research. As specified
in  the  Philippine  National  AI   Strategy  Roadmap,   NCAIR  will  be  also  responsible  for
advancing   AI    research    and    development,    including    algorithmic   innovations,    and
nurturing  Al  talent  and  Data  Science  leaders.  It  will  serve  as  the  central  hub  for  R&D
collaboration   between   the   academe,    industries,    multinational   companies,   and   AI
Startups."
Hence,  this  bill which  serves as  a  complementary bill  to  a  regulatory framework
legislation  for  Al,  seeks  the  establishment  of  the  NCAIR  consistent  with  the  National
Artificial  Intelligence Strategy for the Philippines.
A  similar  bill  (some  provisions  were  deliberately  changed  and  removed  to  align
#i:hjeo£:°E:S::r£: roefgt#:t:ryDTs:r::tu::)c::: filed during the 18th Congress by Rep.
In view thereof,  immediate consideration of this bill is earnestly sought.
Keith M cah "Atty. Mike" D.L. Tan
4th  District,  Quezon


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
NINETEENTH CONGRESS
First Regular Session
HOUSE BILL NO.
7983
Introduced  by:  Hon.  Keith  Micah "Atty.  Mike" D.L. Tan
AN ACT
PROVIDING A NATIONAL STRATEGY FOR THE DEVELOPMENT OF ARTIFICIAL
INTELLIGENCE, CREATING  FOR THE PURPOSE THE NATIONAL CENTER FOR
ARTIFICIAL INTELLIGENCE RESEARCH, AND APPROPRIATING FUNDS
THEREFOR
Be  .It  enacted  by  the  Senate  and  the  House  of  Representatives  of the  Ph.IIippines  in
Congress assembled:
CHAPTER I
GENERAL PROVISIONS
SEC.1.   Short   77.i/e.   -This  Act  shall   be   known   as  the   "Artificial   Intelligence
Development Act".
SEC.   2.   Dec/araf/.on   of  Po//.cy.   -   The   State   recognizes   that   science   and
technology  are  essential  for  national  development  and  progress.  It  shall  support  their
application   to  the   country's   productive   systems   and   national   life   and   regulate  the
transfer and  promote the adaptation  of technology from  all sources for national  benefit.
Towards  this  end,  the  State  shall  pursue  the  development  of artificial  intelligence  (Al),
including   digitization   and   infrastructure,   workforce   development,   and   research   and
development  with   the   end   view  of  harnessing   AI's   potentials  to   uplift  the   lives   of
Filipinos,  local industries,  and the economy.
SEC.  3.  Derr.r}7.fi.on of Terms.  -For purposes of this Act,  artificial  intelligence (Al)
refers to the simulation of human  intelligence in machines that are programmed to think
like humans and mimic their actions.
CHAPTER  11
NATIONAL CENTER FOR ARTIFICIAL INTELLIGENCE  RESEARCH
SEC. 4.  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   Department  of  Science   and   Technology
(DOST) 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   lcT
professional organizations;  and
(f) Three (3) members representing non-governmental  lcT or artificial intelligence
advocacy  organizations  to   be  selected   by  the  chairperson  from   among  the   list  of
nominees submitted by the country's non-governmental lcT 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.
SEC.   5.   Funcfi.orts  of  the  IVCA/R.   -  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 AI 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.
SEC.  6.  Personne/.  -The  personnel  of the  NCAIR  shall  be  primarily  staffed
Filipino  scientists.  The  composition  and  size  of such  personnel  shall  be  determined
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 Ill
INNOVATION AGENDA
SEC.  7.   Role  of  the   National   Innovation   Council.   -The  Nariional  lnnovatiion
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 lv.
SEC. 8.  Government-Industry-Academe Synergy. -  To  promote synergy amor\g
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
SEC.  9.  Research  and Deve/apmenf.  -  The  State  shall  endeavor to  accelerate
innovation  with  A]  as  well  as  master  and  push  its  boundaries;  it  shall  help  industries
innovate, nurture and support Al startups, and transform institutions by:
(a)  Developing competency in Al  research as measured by publications,  patents,
and technology disclosures;
(b)  Inviting  international  experts  that can  bring  in  new Al  technologies  and/or AI
startup or business ideas;
(c)  Providing funding for AI  algorithmic innovations
(d)     Strengthening     academe-industry     partnerships     in     Al     research     and
development;
(e)   lncentivizing   Higher   Educational   Institutions   to   promote  Al   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 Al  research;
(i)  Tracking  and  analyzing  the  quality  and  quantity  of jobs  displaced,  created,
and/or transformed as a result of AI academe-industry partnerships;
ti)  Identifying and  supporting  local Al startups;
(k) Developing state-owned venture funds to support Al startups;
(I)  lncentivizing  and  encouraging  investors  to  support  promising  Al  businesses;
and
(in) Supporting or co-hosting Al-themed competitions, events, and conventions.
SEC.  10.  Dt.gi.fi.zafi.on  ant/ /nfrasfmcfure.  -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;
¢)  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
(I)  Undertaking  extensive  and  up-to-date training  of analysts  and  data  scientists
to extract actionable insights from publicly available data.
SEC.11.   Wonkforoe  Deve/apmenf.  -The  State  shall  transform  education  and
nurture future AI 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)   lncentivizing   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);
0)    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
(I)    Identifying   jobs   that   are   vulnerable   to    automation    and    other   industry
technologies and map the skills that need  upgrading or retooling.
SEC.  12.  Job  D/.sp/acemer}f 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  prej.udice 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  AI  replacement to  protect them
from any prolonged displacement.
CHAPTER V
FINAL PROVISIONS
SEC.13. Appropr7.afi.or}s.  -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.
SEC.14.  /mp/emenf/.ng Ru/es ant/ Regu/af/.ons. -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.
SEC.15.  Repea//.ng  C/ause.  -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.
SEC.   16.   Saparab/./;ty  C/ause.   -   lf  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.
SEC.   17.   Effect/.v/.fy.   -   This   Act   shall   take   effect  fifteen   (15)   days   following
completion  of  its  publication  in  the  Official  Gazette  or  at  least  two  (2)  newspapers  of
general circulation.
Approved,