AI frenzy: How nations are racing to innovate and dominate the market


TECH4GOOD

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Today, tech companies are racing to develop AI-enabled products. Notwithstanding the current debate on the potential harm that artificial intelligence can bring to society, the opportunities are alluring enough for these companies to pass them by. Even countries around the globe are mobilizing resources and support to get into action, including harnessing the transformative power of artificial intelligence.


As businesses and governments recognize AI’s potential to revolutionize various sectors, they invest heavily in research, infrastructure, and talent development. It is about time the Philippines explored the dynamics of this frenzied AI innovation race, how other nations support AI innovation programs, and the capacity-building efforts needed to integrate AI into different industries. 
Recognizing AI’s strategic importance in driving economic growth and competitiveness, many countries are implementing supportive policies and funding initiatives. Governments are investing in research institutions and fostering public-private partnerships to stimulate innovation. Home to top institutions like MIT and Stanford, the United States has a robust ecosystem for AI research supported by significant government funding through initiatives like the National Artificial Intelligence Research and Development Strategic Plan. 


Next to the US, China has become a leading source of AI innovations. The country aims to become a global leader in AI by 2030, with significant investments in research institutions such as Tsinghua University and Peking University. The government supports this through the New Generation AI Development Plan, focusing on applications in healthcare, smart cities, and autonomous vehicles.
Canada was the first to release a national AI strategy, emphasizing research and talent development through institutions like the University of Toronto and the Vector Institute for Artificial Intelligence. The government has invested heavily in attracting AI talent. 


Through the Department of Trade and Industry (DTI), the Philippines launched its National AI Strategy Roadmap (NAISR) 2.0 mid-this year. The roadmap highlights AI’s potential to enhance the country’s industrial competitiveness, address challenges across sectors (e.g., agriculture, manufacturing, healthcare, education), and position the Philippines as a regional hub for AI innovation and investment. 


The establishment of the Center for AI Research (CAIR) is emphasized as critical in both the Philippine Development Plan (PDP) 2023-2028 and the National AI Strategy Roadmap (NAISR) 2.0. CAIR will be the center of excellence in AI research and innovation in the country, aimed at driving socio-economic growth through collaboration among government, industry, and academia.


In Asia, entities similar to CAIR include Singapore’s Agency for Science, Technology, and Research (A*STAR) and Japan’s National Institute of Advanced Industrial Science and Technology (AIST). A*STAR operates as a statutory board under Singapore’s Ministry of Trade and Industry, focusing on research, innovation, and partnerships to enhance economic and technological capabilities. Similarly, AIST functions under Japan’s Ministry of Economy, Trade, and Industry (METI), driving advanced scientific research and industrial applications, particularly in AI and emerging technologies.
CAIR’s initial focus is on developing local AI use cases to demonstrate its power to transform organizational processes, including those of the public sector. The center currently houses eight data scientists and AI engineers and is headed by Dr. Erika Fille Legara of AIM, who used to work as a data scientist at Singapore’s A*STAR. Their work in CAIR has expanded into rolling out and delivering AI awareness programs for Philippine MSMEs. This is in addition to the 14 R&D adoption engagements, which is more than double the initial target of six.


Eventually, CAIR needs to transition from being a program under an agency to being recognized as a full-fledged institution. This elevation will give it greater autonomy and capacity to execute its mission effectively. Once expanded, CAIR is expected to operate with three primary verticals: the first focusing on research and development to drive innovation and AI adoption in various sectors like manufacturing, education, defense, services, agriculture, and healthcare, among others; the second dedicated to training and education to enhance AI skills and awareness, and the third addressing policy development to ensure ethical and responsible AI governance.


AI research centers significantly impact a country’s economy through various mechanisms, enhancing productivity, improving global competitiveness, creating new markets, and driving innovation.  Countries investing in AI position themselves as leaders in technology, attracting investments and talent worldwide.


The race to develop AI-enabled products is not just a technological competition; it represents a significant shift in how countries approach economic growth and innovation. There is no question that the Philippines has to be in the middle of this race. It cannot just stay as a user. It has to move up as a creator and become a significant player in the AI world.  As other nations invest in research, infrastructure, and education, the Philippines has to start laying the groundwork for a future where AI plays a central role across various sectors. As we move into 2025 and beyond, this frenzied pursuit will likely continue profoundly shaping our world.

The author is an executive member of the National Innovation Council, lead convener of the Alliance of Technology Innovators for the Nation (ATIN), vice president of the Analytics and Artificial Intelligence Association of the Philippines, and vice president of the UP System Information Technology Foundation. ([email protected])