Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

fe. yD
KECEIVED
pate 30 JUN 2005

TWENTIETH CONGRESS
First Regular Session

659

HOUSE BILL NO.

__ 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

In line with the report “Developing an Al 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
Al Research (NCAIR) that would serve as the country’s hub for Al Research. As
specified in the Philippine National Al Strategy Roadmap, NCAIR will be also
responsible for advancing Al 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 Al Startups

In July 2024, the Department of Trade and Industry (DTI) launched the
National Al Strategy Roadmap (NAISR) 2.0, and the Center for Al Research (CAIR) at
The Westin Manila, Mandaluyong City. NAISR 2.0 was launched to address significant
barriers to Al adoption in the country, the challenges in developing effective data
strategies, and the ambiguities surrounding Al regulation and legal frameworks.!

To achieve these goals, NAISR 2.0 introduces a strategic framework centered
on two pillars—Innovation and Implementation—and four key dimensions: research
and development (R&D), infrastructure and digitization, workforce development, and
Al ethics and governance. It identifies seven strategic imperatives and thirty (30)
cross-agency tasks such as building internet infrastructure, improving data
accessibility, reforming education, and incentivizing Al startups. The strategy
underscores the role of CAIR operationalized in 2024, to serve as the country’s Al hub,
aligning academic, industry, and government R&D initiatives. Legislative support is
needed to ensure sustained funding (targeting 1% of GDP on R&D), harmonize Al-
related regulations, and institutionalize frameworks for responsible Al deployment.

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Hence, this bill which serves as a complementary bill to a regulatory
iramework legislation for Al, seeks the establishment of the NCAIR consistent with
the National Artificial Intelligence Strategy for the Philippines.

In view thereof, immediate consideration of this bill is earnestly sought.

Keith uA harroi

4th District, Quezon

Tan


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS
First Regular Session

659

HOUSE BILL NO.

D.L. Tan

Introduced by: Hon. Keith Micah “Atty. Mik

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 Philippines in
Congress assembled:

CHAPTERI
GENERAL PROVISIONS

SEC. 1. Short Title. - This Act shall be known as the “Artificial Intelligence
Development Act.”

SEC. 2. Declaration of Policy. - 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 Al's potentials to uplift the lives of
Filipinos, local industries, and the economy.

SEC. 3. Definition 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 II
NATIONAL CENTER FOR ARTIFICIAL INTELLIGENCE RESEARCH

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 ICT professional organizations; and

(f) 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 ICT 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. 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.

SEC. 6. 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 III
INNOVATION AGENDA

SEC. 7. 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 IV.

SEC. 8. 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 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 Development. - The State shall endeavor to accelerate
innovation with Al 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
Al startup or business ideas;

(c) Providing funding for Al algorithmic innovations

(d) Strengthening academe-industry partnerships in Al 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 Al research;


(i) Tracking and analyzing the quality and quantity of jobs displaced, created,
and/or transformed as a result of Al academe-industry partnerships;

{j) Identifying and supporting local Al startups;
(k) Developing state-owned venture funds to support Al startups;

(I) Incentivizing and encouraging investors to support promising Al
businesses; and

(m) Supporting or co-hosting Al-themed competitions, events, and
conventions.

SEC. 10. 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

(i) Undertaking extensive and up-to-date training of analysts and data
scientists to extract actionable insights from publicly available data.


SEC. 11. Workforce Development. - 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;

(1) 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 literacy;

(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

(I) Identifying jobs that are vulnerable to automation and other industry
technologies and map the skills that need upgrading or retooling.

SEC. 12. 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 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 Al replacement
to protect them from any prolonged displacement.

CHAPTER V
FINAL PROVISIONS

SEC. 13. Appropriations. - 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. Implementing Rules and Regulations. - 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. Repealing Clause. - 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. Separability Clause. - If 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. Effectivity. - This Act shall take effect fifteen (15) days following
completion of its publication in the Official Gazette or at least two (2) newspapers of

gencral circulation.

Approved,