In 2025, the Philippines’ digital economy produced a gross value added of USD 44.35 billion (about PHP 2.74 trillion), or 9.8% of GDP. Currently, the industry employs 10.39 million people, or 21.2% of all workers, and about one in ten pesos in the economy comes from digital activity. Given the importance of the digital economy, the Philippines requires governance infrastructure capable of managing emerging risks while leveraging technologies—including AI—to sustain economic momentum.
To this end, the Department of Economy, Planning and Development (DEPDev) is developing the upcoming AI Governance Framework for the Philippines, which will outline the nation’s first whole-of-government strategy for a reliable, inclusive, and ethical AI ecosystem. Furthermore, in late May 2026, Manila hosted a meeting of senior economic officials that concluded negotiations on the ASEAN Digital Economy Framework Agreement (DEFA), the bloc’s first regional digital economy agreement, scheduled for signing in November 2026.
Moderators and Speakers
- Leandro Angelo Aguirre, Undersecretary for Strategic Initiatives, Department of Information and Communications Technology
- Monchito Ibrahim, Lead Convener, Alliance of Tech Innovators for the Nation
- Josephine Romero, Senior Adviser, ABAC Philippines
- Grace Mirandilla Santos, Independent Policy Researcher
- Frances Claire Tayco, Chief Executive Officer, CirroLytix Research Services
- Sherwin Pelayo, Executive Director, Analytics & Artificial Intelligence Association of the Philippines
- Christian M. Alis, Assistant Professor, Asian Institute of Management
- Marbida L. Marbida, Director, Better Regulations Office, Anti-Red Tape Authority
- Arifah Sharifuddin, Institute Director, Tech for Good Institute
- Keith Detros, Programme Manager, Tech for Good Institute
Key Takeaways
- Effective governance requires coordination, not just legislation
Participants discussed the necessity of a comprehensive AI law, reaching a consensus that the immediate priority is establishing a coherent governance framework. Legislative processes often struggle to keep pace with technological advancement; consequently, participants cautioned that overly prescriptive legislation risks becoming obsolete before implementation. Emphasis was placed on ensuring new regulations are narrowly focused on addressing specific gaps and contextualised to the Philippine setting, rather than simply replicating frameworks from other jurisdictions.
Existing foundational instruments—such as the NPC advisory on the Data Privacy Act and the draft circular from the DICT and Civil Service Commission—demonstrate that current frameworks can be adapted for new technologies. The next phase of governance should shift focus from creating new frameworks to improving implementation, institutional alignment, and coordination. Participants identified the forthcoming AI Governance Framework as a critical opportunity to unify currently parallel sectoral strategies into a cohesive implementation plan.
A recurring theme was the necessity for greater policy coherence. Participants observed that multiple AI strategies and sectoral programmes have emerged; however, they often operate in parallel without a unified implementation plan. While significant progress has been achieved across government, industry, and academia, participants stressed that the next phase of AI governance should rely less on the introduction of additional frameworks and more on coordination, implementation, and alignment among institutions. They looked to the forthcoming AI Governance Framework for the Philippines to provide the coherence needed in this regard.
- Resilience depends on infrastructure, skills, and institutional readiness
AI readiness extends beyond the technology itself to encompass energy infrastructure, connectivity, interoperable public systems, and workforce capability. While interest in AI adoption is growing, structural challenges continue to hinder the pace of deployment. Although many public services have undergone digitalisation, a lack of interoperability has resulted in fragmented systems that impose administrative burdens. Strengthening cross-agency coordination is essential to realising the productivity gains promised by AI.
Workforce readiness is a critical priority. An IMF working paper indicates that one-third of occupations in the Philippines are highly exposed to AI; while many of these roles are complementary, 14% of the total workforce holds jobs with low complementarity, making them vulnerable to displacement—particularly within the IT-BPM sector. While initiatives like the National AI Upskilling Roadmap, TESDA training regulations in analytics and AI, and the Enterprise-Based Education and Training Act are underway, participants stressed the need to improve implementation and extend support to workers requiring mid-career reskilling. Furthermore, Micro, Small and Medium Enterprises (MSMEs) require targeted support, as limited resources and technical expertise remain significant barriers to safe AI adoption.
A variety of initiatives are currently underway, including the National AI Upskilling Roadmap, Technical Education and Skills Development Authority (TESDA) training regulations in analytics and AI, and the Enterprise-Based Education and Training Act. However, there is a consensus on the necessity to improve implementation and extend support to workers already in the labour force, particularly those requiring mid-career reskilling. Micro, small, and medium enterprises (MSMEs) have been highlighted as facing significant barriers, including limited resources, technical expertise, and governance capabilities, which hinder their ability to adopt AI safely.
- The Philippines’ advantage lies in its people, governance, and applied AI
Participants observed that the Philippines is best positioned to shape the adoption, application, and governance of AI, rather than focusing on the development of foundational models or infrastructure. Discussions centred on leveraging existing strengths in services and knowledge-based industries to remain competitive. A key theme was the importance of digital sovereignty—specifically, the need to distinguish between data localisation, data residency, and data sovereignty when formulating policy.
There is a clear opportunity for the Philippines to cultivate expertise in AI assurance, auditing, evaluation, and human oversight. Additionally, the government plays a vital enabling role through procurement, standards-setting, and building capacity to address information integrity and digitally mediated harms. The Philippines’ upcoming 2026 ASEAN chairmanship and the conclusion of the ASEAN Digital Economy Framework Agreement offer valuable opportunities to enhance regional cooperation and integrate the country into emerging AI value chains. Ultimately, long-term competitiveness will depend on the collaborative effort of government, industry, academia, and civil society to cultivate the people and institutions necessary for effective AI utilisation.
