National emergency, digital response: Passing the PITIK test in a time of crisis

At our recent Management Association of the Philippines General Membership Meeting in Cebu, one framework stood out for its clarity and urgency. It came from Cielito Habito, who reminded us that the Philippine economy today is undergoing what he calls the PITIK test — presyo, trabaho, kita (prices, work, income).

It is a simple way of looking at a complex situation. Are prices stable? Are jobs improving? Are incomes keeping up?

Based on his analysis in early 2026, the answer is mixed at best, and increasingly concerning.

Inflation surged to 4.1% in March, breaching the upper end of the government’s target range. Transport costs alone spiked dramatically, from negative territory just a month earlier to nearly 10%, largely driven by rising fuel prices. Food and energy costs are beginning to cascade through the system. There is now real concern about a wage-price spiral, where rising costs force wage adjustments, which in turn push prices even higher.

On employment, the numbers suggest some improvement, with unemployment easing to 5.1%. But this masks deeper issues. Job quality remains uneven, with underemployment still elevated. Some sectors are growing, but others, particularly agriculture and retail, are lagging.

And on incomes, the pressure is clear. Even where jobs exist, many Filipinos are finding that their earnings are not keeping pace with rising expenses. Purchasing power is weakening, and growth in lower-value services is not translating into meaningful income gains.

Taken together, this is the PITIK test in action. Prices are rising. Jobs are uneven. Incomes are under strain.

Overlay this with the current geopolitical situation, particularly tensions between the United States, Israel, and Iran, and the picture becomes even more complex. Any disruption in global oil supply routes quickly feeds into domestic inflation. For an import-dependent economy like the Philippines, external shocks translate almost immediately into internal pressure.

This is what makes the current moment feel like a national emergency, not in the dramatic sense, but in a structural one. The pressures are real, interconnected, and persistent.

The question now is how we respond.

Traditionally, responses have been reactive. We wait for inflation numbers before adjusting policy. Businesses adjust prices after costs rise. Supply chain shifts happen only after disruptions are felt. By the time action is taken, the impact is already widespread.

But what if we could improve how we respond? What if we could move faster, decide earlier, and act with better information?

This is where artificial intelligence (AI) begins to play a more important role.

For many, AI is still associated with chatbots, automation, or content creation. These are useful applications, but they are not the most critical ones in a time of economic stress. The real value of AI lies in its ability to process large amounts of data, identify patterns, and support faster decision-making.

In the context of the PITIK test, AI becomes a tool for improving how we manage presyo, trabaho, at kita.

On presyo, or prices, the biggest challenge is timing. Inflation data is often reported with a lag, which means decisions are made after the fact. AI can help bridge that gap. By analyzing real-time data from fuel markets, logistics flows, supply chains, and consumer transactions, AI can provide early signals of price movements. This allows policymakers and businesses to anticipate inflationary pressures rather than react to them.

For companies, this means better pricing strategies, improved inventory management, and more informed procurement decisions. For government, it means earlier intervention and more targeted policy responses.

On trabaho, or jobs, the issue is not just quantity but quality. AI can help identify where job demand is shifting and what skills are becoming more valuable. Workforce data, industry trends, and hiring patterns can be analyzed to guide training programs and education initiatives. This helps align the labor force with emerging opportunities, particularly in higher-value sectors.

Businesses can also use AI to improve workforce planning, matching talent more effectively to roles, and identifying productivity gaps that can be addressed through training or technology.

On kita, or income, the challenge is improving productivity. Many Filipino workers are still in lower-value roles, where income growth is limited. AI can help businesses move up the value chain by improving efficiency, enabling better decision-making, and supporting new products and services. Even simple applications, such as demand forecasting or customer analytics, can help companies increase margins and create room for better wages.

What becomes clear is that AI is not a standalone solution. It is an enabler. It improves how decisions are made across the system.

But technology alone will not be enough to pass the PITIK test.

There are three areas where business leaders, in particular, can act more decisively.

First, companies need to strengthen supply chain resilience. The combination of global tensions and rising costs exposes the risk of relying on a single source of supply. Diversifying across ASEAN markets, building regional partnerships, and creating flexibility in sourcing are no longer optional strategies. They are necessary to manage volatility in both prices and availability.

Second, energy resilience must become a board-level concern. The recent spike in transport inflation is a direct reminder of how vulnerable businesses are to fuel costs. Investing in energy efficiency, exploring renewable energy options, and securing long-term energy arrangements can help stabilize costs over time. Companies that manage this well will be less exposed when global shocks occur.

Third, organizations must invest in data and decision capability. This does not mean large, complex AI programs. It starts with making better use of existing data. Improving forecasting, enhancing operational visibility, and building internal capability to analyze information can significantly improve responsiveness. In a fast-moving environment, the ability to make timely decisions is a competitive advantage.

These actions are not about reacting to a single crisis. They are about building the capacity to respond to future shocks.

The discussions in Cebu made one thing clear. The PITIK test is not just an economic framework. It is a leadership challenge.

How do we manage rising prices? How do we create better jobs? How do we improve incomes?

Answering these questions requires more than policy adjustments. It requires a shift in how we think about data, technology, and decision-making.

Artificial intelligence will not eliminate uncertainty. But it can help us navigate it better.

In the end, the issue is not whether we will face disruptions. We will. The issue is whether we can respond with enough speed, clarity, and coordination to manage their impact.

The PITIK test reminds us what to measure. AI can help us respond.

The real question is whether we are prepared to act on time.

Dr. Donald Patrick Lim is the founding president of the Global AI Council Philippines and the Blockchain Council of the Philippines, and the founding chair of the Cybersecurity Council, whose mission is to advocate the right use of emerging technologies to propel business organizations forward. He is currently the president and COO of DITO CME Holdings Corp.