About AI and power

(Second of two parts)
In my previous column*, we turned the spotlight on this observation that digitalization and artificial intelligence (AI) are being positioned as the silver bullet, the solution to the issues of corruption, government inefficiencies, and the educational crisis, among others. Any genuine effort to pursue this path, however, will necessarily confront the critical question of energy security. It is not enough, however, that preparations are made to ensure that there is sufficient generation capacity to power a Digitally Connected Philippines, as envisioned in the National Digital Connectivity Plan approved by the President last month. We must ask the much harder, transformational, if not existential, question: What is the shape or form of an electric power industry that fuels a digitally operating, AI-powered economy?
I had identified the first two points in the last column. First is the need to imagine differently. We cannot, for instance, credibly position the country as a location of choice for data centers unless we also prepare for the impact of proper siting and rate or cost allocation design, among others, that these digital storage and processing complexes will have on the larger communities and different consumer bases. In other words, the introduction of digital infrastructure to support an AI-powered economy will make the current systems unrecognizable and unworkable, unless these are likewise transformed. Second is the vital necessity of having our values clarified, articulated, and reinforced as our processes and tools become more digital. What are the beliefs and principles important to us as individuals, as a society, as a nation? How do we draw the lines we should not cross in the adoption of AI? If we are not going to be deliberate about this exercise, there is imminent danger of having the systemic ills (such as corruption, lack of economic mobility, energy poverty) simply becoming more entrenched as we grow increasingly digital.
This leads me now to the three other points.
1. Guard against the temptation to abdicate accountability. The age of AI will truly test the mettle of our policy makers and regulators as they design a new policy and regulatory environment. While regulatory work — in the energy sector and other industries — has always been about balancing competing interests to find a united path forward, the emerging intensely digital era will add another layer of challenge as government leaders try to balance hard-coding compliance without surrendering or abdicating accountability.
In the age of AI, it will be possible to roll out regulatory standards in the power sector to ensure performance metrics are monitored and met by equipment and power systems. Regulations on outage monitoring and even rates implementation can be issued with accompanying software or a digital patch to allow regulators real time access to information, increasing accuracy in data, and reducing reliance on stakeholders’ submissions. In an AI-enabled system, there is a genuine opportunity to make compliance (instead of exceptions) the norm and enforcement non-discriminatory.
Given the ease of enforcement that is possible with AI, however, there is great temptation for regulators and rule enforcers to just let AI do the job and say, “The AI made me do it.”
Professor Richard Susskind, in his book How to Think About AI, which I referenced also in the previous column, underscored this point when he discussed the political risks of AI: “The generic concern is that the technology itself (often insidiously) and those who control AI (often but not always consciously) can exert extensive control over humans’ choices, they can scrutinize our activities, and they can shape our perceptions… Crucially, this dominance is sustained currently by ‘unaccountable power’…” Therefore, he says in a later chapter, “…we should revisit how we allocate responsibility and liability when AI systems lead to blameless humans suffering loss, damage, or injury.”
As we introduce more AI-solutions to handle the increasing complexities of the Philippine power system and power markets, how do we allocate responsibility and liability for any “loss, damage or injury” that may result from the application of these solutions?
2. We need to double down on what makes us human. Not many people have tried to explain the phenomenon around Alex Eala that the world has recognized over the last few months — even the sports writers and observers who tried acknowledge that they cannot fully explain the magic. It is something that extraordinary athletes, artists, and musicians have that simply enrapture us ordinary mortals. In his book, Professor Susskind had this to say about AI in sports and the arts: “It’s not just about speed and accuracy. It’s the inspiration we derive from fellow humans at their peak. The way in which these outcomes are achieved is vital and irreplaceable part of being a spectator…(An) indispensable part of the experience is the knowledge that another human is at the other end.”
In the Philippine power sector, as the base for retail competition grows, we hope to see an AI-enabled environment that will make possible the rise of the super-consumers: those who are equipped with the right tools, the proper training to use the tools, and the maturity to exercise their power of choice wisely to effectively realize their objectives. This will lead to a tectonic shift in industry growth — driven less and less by the objectives of large infrastructure, but increasingly by the specific needs of users of the system and consumers of the goods.
3. “How do you change a wheel in a moving car?” Finally, we have to accept and be comfortable with the fact that this journey to a digitally connected economy will be one that is marked by great disruptions. Systems will need to continue working to the extent that they can, but they will also be upended to integrate better components or be replaced to produce better outcomes.
This kind of disruption will need different kinds of leaders, not necessarily of the mold and make that have been labeled as successful for the last few decades. This kind of future will need Visionary Disruptors: self-confident but flexible, able to hold on to a certain level of optimism in an environment of widespread resistance, quick and wise to seize slivers of possibilities with minimal friction, and (most importantly) willing to be rendered redundant or irrelevant in the role once the vision is achieved.
In the area of dispute resolution, for example, Professor Susskind forecasts the rise of “AI-based dispute resolution and AI-enabled self-representation supported by systems that can help people understand and enforce their entitlements for themselves.” In a limited fashion, we already see this in how our claims for refund or complaints for delays are resolved by food delivery or online shopping platforms. There is no need to file a claim and pay filing fees in any court or government office. Most cases are resolved in a matter of hours via the gadget on your hand. Imagine if consumer complaints for high or unusual power bills were resolved this quickly by our distribution utilities and electric cooperatives!
It is easy to see why we can get enamored by the promise of AI and digital solutions to solve our long-standing issues as a people. The above points are not meant to stop us on our tracks — we just need to be mindful that we cannot anticipate and prepare for tomorrow’s problems if we are locked into today’s thinking. We cannot be in a state of passive surrender as we become increasingly AI-enabled. We need to proceed instead from a point of humble discernment and breed a staging ground for more courageous exploration and purposeful action.
*Read Part 1 here: https://tinyurl.com/26jzqkkm
Monalisa C. Dimalanta is a senior partner at Puyat Jacinto & Santos Law (PJS Law). She was the chairperson and CEO of the Energy Regulatory Commission from 2022 to 2025, and chairperson of the National Renewable Energy Board from 2019 to 2021.

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