DAVAO CITY – The Mindanao Development Authority actively integrates artificial intelligence technologies to promote innovation and sustainable economic growth across Mindanao, particularly in agriculture and small-and medium-sized businesses.

MinDA Assistant Secretary Romeo Montenegro emphasized that AI is no longer a distant prospect but a present-day necessity. He said AI is the future in which people must integrate into business processes across many industries, including small and medium businesses.

“The agency has been at the forefront of leveraging digital technology through international partnerships such as the Brunei-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA), where the Philippines serves as a country secretariat,” Montenegro said.

He added that under the BIMP-EAGA Korea Fund, several innovative renewable energy and agriculture projects have already taken root in Mindanao, such as the Barako Coffee plantations in Bukidnon, which have adopted Internet of Things and remote sensing technologies.

Montenegro explained that these tools enable real-time monitoring of crop nutrient levels and other key agricultural metrics—an initiative he described as a model for future integration of AI and innovative farming practices.

Building on this momentum, the MinDA official cited that the agency works closely with MasterCard to pilot a digital ecosystem for farmers’ cooperatives in Mindanao. “This will be a first for the Philippines,” he added.

Montenegro said the project aims to help farmers digitize their operations, from production tracking to financial recording, effectively creating a data-backed credit scoring system.

“This innovation is expected to improve access to financing from institutions like the Land Bank of the Philippines and the Development Bank of the Philippines (DBP),” he said.

Montenegro said that the initiative could address long-standing issues in the agricultural sector, such as poor logistics, lack of access to credit, and inefficient market linkages.

He said by using AI to monitor production volumes and forecast supply needs, farmers can align with market demands and reduce post-harvest waste. “We don’t want situations where it’s cheaper to throw away the produce than to bring it to market.”

Montenegro acknowledged that scaling AI adoption would require significant effort to change mindsets, especially among farmers still relying on traditional methods.

“The Philippines ranks second in the world in coconut production, but many trees are already 70- to 80-years-old. New technology like hybrid rice yields three times more than traditional varieties, yet adoption remains slow,” he said.

Beyond agriculture, Montenegro also highlighted the broader productivity benefits of AI. From aiding SMEs in data analysis to empowering individuals with instant access to expert-level content creation, AI is already reshaping workflows.

“AI is now a public relations tool. In seconds, I can generate a complete press release, with context and quotes. That’s how transformative it is,” Montenegro said.

The official acknowledged that while countries like Malaysia and Vietnam have surpassed AI integration, Mindanao is determined to catch up by embedding technology in real-world systems. “We’re probably 10 years behind, but we’re bridging that gap. The time to act is now,” he said.

As Mindanao continues positioning itself as a hub for digital agriculture and innovation, Montenegro said the MinDA’s initiatives are shaping a future where technology, inclusivity, and sustainable development go hand in hand.