The National Economic and Development Authority (Neda) calls for sweeping changes to laws and regulations to facilitate the adoption of artificial intelligence (AI) in the Philippines.
Artificial intelligence (AI) has the potential to revolutionize the Philippines , but its widespread adoption hinges on addressing legislative roadblocks, according to the National Economic and Development Authority ( Neda ), the government's socioeconomic planning body. In a policy report released on Friday, Neda recommended the removal of the legislative franchise requirement for connectivity service providers, data centers, and cloud service providers.
The agency argues that access to high-speed broadband, 5G networks, and energy-efficient data centers remains limited, particularly in underserved areas. Removing this requirement would lower barriers to entry, foster competition, and attract private sector investment in crucial digital infrastructure. Currently, companies seeking to build essential digital infrastructure like 5G networks and cloud services face a lengthy process of obtaining congressional approval, which can take years. While the Philippines boasts a mobile connection rate of 121.8 percent relative to its population, with 98.2 percent running on 3G, 4G, or 5G according to global research firm Kepios, Neda contends that outdated laws, such as the Public Telecommunications Policy Act of 1995 (RA 7925) and the Radio Control Law of the Philippines (RA 3846), hinder investment and innovation in the sector. Neda emphasizes the need to reform these laws to create a favorable environment for modern connectivity infrastructure. Beyond franchise requirements, Neda advocates for spectrum management reforms to ensure efficient allocation of frequencies, especially for 5G networks. To support AI adoption, the agency calls for a modernized and streamlined regulatory framework that simplifies processes, promotes competition, and provides clear rules for investment. Strengthening regulatory institutions, Neda adds, is crucial to ensure that digital infrastructure aligns with national development priorities. By tackling regulatory challenges and prioritizing infrastructure investments, the Philippines can position itself as a competitive hub for AI-driven solutions. Neda also stresses the importance of robust institutional oversight to foster public trust in AI. It proposes establishing a dedicated body to monitor AI progress, coordinate policies across sectors, and engage with stakeholders. This oversight body, Neda suggests, would provide a central platform for addressing concerns, collaborating with sectoral agencies, and tracking the outcomes of AI-related initiatives. Other recommendations include promoting energy-efficient technology and e-waste management, developing a skilled workforce, improving data governance, expanding digital infrastructure, and establishing clear AI strategies. To stay ahead in the AI race, the Philippines is pushing House Bill 7396, or the “Artificial Intelligence Development and Regulation Act of the Philippines,” which aims to create the Artificial Intelligence Development Authority (AIDA) to regulate and promote AI adoption in the country.
Business Artificial Intelligence Philippines Neda Regulatory Reform Digital Infrastructure AI Adoption House Bill 7396 AIDA
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