The National Economic and Development Authority (NEDA) has committed to support the formulation of regulations that enable industries to leverage productivity-boosting technologies such as artificial intelligence (AI).
NEDA Secretary Arsenio M. Balisacan said that AI has substantial benefits, suggesting that the Philippines could realize an annual gain of P2.6 trillion if businesses embrace AI-powered solutions.
Balisacan cited AI’s transformative potential for enhancing operational efficiency, automating tasks, optimizing decision-making processes, and driving innovation across industry sectors.
“Sectors such as retail, logistics, manufacturing, and financial services can revolutionize operations and enhance performance through the use of AI,” Balisacan said during the launching of the National AI Strategy Roadmap 2.0 and the Center for AI Research (CAIR).
“The technology is estimated to contribute $15.7 trillion to the global economy by 2030, according to one estimate, with the Philippines potentially gaining P2.6 trillion annually if businesses adopt AI-powered solutions,” he added.
Balisacan also noted the significant progress in generative AI, with its capacity to create content, designs, and solutions autonomously.
The NEDA chief said this technology is poised to revolutionize industries by substantially reducing production costs.
McKinsey estimated that generative AI has the potential to generate an annual economic value between $2.6 trillion and $4.4 trillion across sectors, particularly in marketing, customer service, and product development.
“By integrating generative AI, the Philippines can take a leading role in creative industries, software development, and other high value-added services, further boosting our economic potential,” Balisacan said.
While AI technologies pave the way for innovation, Balisacan also said they bring workforce challenges.
Citing the 2023 Future of Jobs Report, Balisacan noted that 75 percent of companies are expected to integrate AI into their operations within the next five years.
“Implementing the National AI Strategy Roadmap 2.0 will help ensure a fair transition to AI, supporting displaced workers through upskilling, reskilling, and training,” Balisacan said.
“Investing in education to create AI-related training and incorporating AI courses into existing programs will equip Filipinos with the skills to capitalize on emerging technologies, giving the country a competitive advantage, attracting more investments, and fueling economic growth,” he added.
Balisacan said NEDA is committed to working with the Department of Trade and Industry in implementing Roadmap 2.0.
“We are committed to enabling the adoption of productivity-enhancing technologies by evaluating their potential applications, assessing their economic impacts, and helping develop responsive policy, legal, and regulatory frameworks,” Balisacan said.
“To unlock opportunities such technologies enable, we must address the challenges of limited internal capacities in our public institutions and infrastructure. These factors impede the effective oversight and facilitation of AI development and regulation,” he stated.
According to the 2023 Government AI Readiness Index developed by Oxford Insights, the Philippines trails behind in government readiness to implement AI.
In response, Balisacan emphasized the importance of establishing sufficient and efficient digital infrastructure.