Balisacan says PHL well-placed to leverage AI

THE PHILIPPINES can leverage artificial intelligence (AI) to improve jobs and boost economic growth, the Department of Economy, Planning, and Development said.

“The Philippines is well-positioned to take advantage of fast-evolving technologies — if we adopt a strategic, well-coordinated approach that balances innovation with effective governance and responsible use,” Economy Secretary Arsenio M. Balisacan said in a speech on Wednesday.

“AI is rapidly becoming part of our daily lives. Today, three out of four workers around the world use AI on the job — a trend many of us may recognize firsthand, with 86% of Filipino knowledge workers reporting AI use at work.”

The Philippines climbed nine places to 56th out of 188 countries in the 2024 edition of the Government AI Readiness Index published by Oxford Insights.

The Philippines scored 58.51 out of a possible 100 points, exceeding the global average of 47.59.

Mr. Balisacan said AI has the potential to “boost productivity and drive economic growth in the short term.” However, he noted the long-term impact is “far less certain.”

“Some studies foresee substantial gains, while others point to modest returns and mixed outcomes — highlighting risks such as job displacement, widening inequality, and a decline in incentives for original content creation due to AI.”

With the rapid digital transformation of the Philippines, Mr. Balisacan said there is a need for safeguards and inclusive policies.

The digital economy grew to P2.1 trillion in 2024 from P1.6 trillion in 2018.

To maximize the opportunities from AI, the Mr. Balisacan cited the need to build an AI-ready workforce.

“While AI opens up new opportunities, it also brings the risk of disruption — especially for certain types of jobs. Some roles are more exposed to automation, while others stand to benefit more from AI support.”

“That’s why we must act quickly: reskilling workers in sectors where AI is less of a complement, and expanding opportunities in areas where humans and AI can work hand in hand.”

There is also a need for “strong and resilient digital infrastructure,” he said.

“The internet remains one of the most critical enablers of digital transformation. To unlock the full potential of AI and other technologies, we need to ensure that connectivity reaches every corner of the country — consistently, and at a cost people can afford.”

“But bridging the digital divide isn’t just about access. It’s about keeping the country competitive, ensuring everyone can participate in the digital economy, and opening doors to flexible work that improves people’s quality of life.”

Mr. Balisacan also noted the need for a forward-looking regulatory framework that “enables innovation while ensuring accountability.“

“Moving forward, building an inclusive and resilient AI ecosystem will require a whole-of-society approach.”

“This means tackling long-standing constraints with stronger legal and institutional support, sound governance, and close collaboration across sectors.” — Luisa Maria Jacinta C. Jocson