AI as a national imperative: Building a smarter, stronger Philippines

Artificial Intelligence (AI) is no longer a futuristic abstraction — it is here, shaping economies, automating industries, enhancing governance, and revolutionizing how societies function. For the Philippines, the question is no longer whether we adopt AI, but how fast and how boldly we do it.

Last week, as Congress and the Senate opened their new sessions, one clear trend emerged: lawmakers from both chambers have filed bills pushing for Artificial Intelligence as a national priority. From AI roadmaps to institutional research centers, legislative momentum is finally catching up to the global urgency. President Ferdinand Marcos, Jr. himself declared AI as a national imperative, recognizing that our survival in the Fourth Industrial Revolution hinges on how we embrace this powerful technology.

The Department of Science and Technology (DoST), under the leadership of Secretary Renato Solidum, is already laying the groundwork. In a recent presentation with the Institute of Corporate Directors, Mr. Solidum outlined the DoST’s initiatives to integrate AI into research, education, disaster resilience, and economic development. From smart farming to predictive modeling for typhoons and flooding, from health diagnostics to language processing in Filipino and local dialects, the applications are vast and transformative. The government’s role is becoming clear: set direction, establish standards, and provide catalytic support.

But the real work will require collective action — especially from the private sector. If the Philippines is to become a true AI-enabled nation, industry must not wait for government mandates. It must lead innovation, provide resources, and collaborate on scalable solutions. Only through a whole-of-nation approach can we ensure that the Philippines is not just a consumer of AI technology, but a creator and leader in the space.

AI is not just a tool; it is a multiplier of national capacity. In healthcare, AI can bridge the shortage of doctors by enabling remote diagnostics, patient triaging, and disease prediction. In education, intelligent tutoring systems can help personalize learning for students, especially those in rural and underserved areas. In agriculture, AI can optimize planting schedules, detect crop diseases, and improve food security. In finance, AI enables better fraud detection, faster credit scoring, and broader financial inclusion for the unbanked.

And in governance, AI can improve service delivery, reduce bureaucratic red tape, and strengthen disaster response through predictive analytics and real-time data. Imagine a Philippines where floods are predicted days in advance with pinpoint accuracy, where city traffic is managed through intelligent systems, and where social protection programs are targeted with data-driven precision. These are not dreams — they are already being done elsewhere. The Philippines must catch up and, ideally, leap ahead.

But we cannot leap alone. The private sector must recognize that AI is not just a tech department concern — it is a boardroom issue. Executives, founders, and entrepreneurs must now view AI as core to their survival and competitiveness. It’s not just about automating customer service with chatbots or adding AI to marketing analytics. It’s about reimagining products, services, and value chains. It’s about understanding the data they already have — and the insights they are not using.

This is especially crucial for the business process outsourcing (BPO) industry, which employs over a million Filipinos and contributes nearly a tenth of our GDP. AI is disrupting voice-based and routine service jobs at an alarming pace. While some see this as a threat, it can also be a moment of reinvention. The Philippines must move from a BPO model to a KPO (Knowledge Process Outsourcing) and AIO (AI-enabled Outsourcing) model. To do this, we must invest in large-scale education and upskilling, so that Filipino workers can transition into higher-value roles in data analytics, AI operations, machine learning QA, and cybersecurity.

This is where education becomes the backbone of AI transformation. AI won’t just affect our workforce — it will redefine the very skills needed to participate in the economy. The Technical Education and Skills Development Authority (TESDA) deserves recognition for taking early leadership through its Enterprise-Based Virtual Education and Training (EVET) program, a platform designed to bring digital skills to workers right where they are — within industries, companies, and communities. TESDA’s approach to enterprise-based training models should now be scaled across sectors, integrating AI-focused modules into its curriculum alongside technical, soft, and adaptive skills.

Likewise, the Commission on Higher Education (CHED) and our leading universities must embed AI and data science fundamentals across disciplines — not just in engineering or IT. In today’s world, even marketing professionals, human resource managers, and supply chain specialists need a basic understanding of AI tools and data-driven thinking. Every profession will intersect with AI in some form, and education must reflect that.

Industries such as logistics, finance, healthcare, and manufacturing must begin their AI transitions now. This means investing in talent, retraining workforces, and adopting tools that can make operations smarter. Filipino talent has always been globally competitive — and with the right education infrastructure, we can climb up the value chain in global AI services and innovation.

It’s also time for Filipino businesses to collaborate, not compete, in AI development. We need shared data repositories, open models, and consortiums to develop industry-specific solutions. Small- and medium-sized enterprises must not be left behind. If only big corporations can afford AI, we risk widening the innovation gap. Government can play a convening role here — setting standards, providing infrastructure, and offering incentives for AI adoption.

Internationally, we must form partnerships to leapfrog. Countries like Singapore, India, and Japan have already built AI innovation hubs. The Philippines must join this network, not as a junior partner, but as a country with a unique perspective and rich potential. Global investors are looking for the next AI frontier. With over 100 million citizens, a young and tech-savvy population, and a government now aligned with the AI agenda, we offer a compelling case. But we must act fast.

This is why AI hackathons, sandboxes, testbeds, and innovation grants must proliferate. We need to energize not just the tech community but also students, creatives, scientists, and civil servants. Let AI be the spark for cross-sector collaboration. Let it be the glue that connects our startups with our schools, our bureaucrats with our engineers, our small towns with our global ambitions.

The stakes are too high for complacency. If we do not lead in AI, we will be disrupted by it. If we do not innovate, we will import. If we do not train, we will be replaced. But if we act, and act together, we can create jobs, improve lives, and transform the Philippines into an AI-powered economy with Filipino values at its heart.

Let us not wait for the future to arrive. Let us build it — intelligently, inclusively, and fearlessly.

AI is a national imperative. But more than that, it is our national opportunity.

Dr. Donald 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.