ADB eyes $300-M loan to boost Philippine tech adoption
By John Victor D. Ordoñez, Reporter
THE ASIAN Development Bank (ADB) is considering lending at least $300 million to the Philippines as it tries to adopt new technologies by 2025, the Department of Trade and Industry (DTI) said on Tuesday, adding that it could develop local artificial intelligence (AI) research.
“We are thinking of incorporating this into our planned Center for Artificial Intelligence Research, which the ADB is encouraging us to create in the Philippines,” Trade Secretary Alfredo E. Pascual told senators during a hearing on its 2024 budget. “Counterpart funding from the Philippines would be required.”
Mr. Pascual said the AI research center is meant to help micro, small and medium enterprises (MSMEs) implement AI solutions in their operations since larger companies are already hiring foreign consultants to guide their AI adoption.
Senator Lorna Regina “Loren” B. Legarda told the hearing the Trade department should fast-track efforts to develop AI research in the country.
“Let’s not wait for the infrastructure to be set up before we start building the capacity of our people to AI,” she said.
Senator Mark A. Villar backed the push for more AI research since the AI center’s construction would likely take two years to complete.
“Other countries are very concerned also about what AI might mean for labor and what the implications are,” he said. “I think it’s important that we learn how we can leverage it to help our industries.”
Trade Undersecretary Rafaelita M. Aldaba said the agency had been seeking P200 million for the center’s construction for the past two years but has failed to get funding.
“AI can also be used to promote bad things, but what we’re promoting really is good AI, responsible AI, and hence the need for a governance framework,” she said.
In a July report, ADB said 20% of Philippine workers face a high risk of losing their jobs due to automation.
Ms. Aldaba said DTI would need funding to buy supercomputers and hire AI experts for the research center.
“It’s going to house our data scientists, researchers and engineers who will be conducting AI research and development,” she said.
The committee submitted the DTI’s proposed P7.9-billion budget to the Senate plenary for further debates.
In June, DTI said the AI research hub would cost about $20 million (P1.1 billion) to build, which would also have funding from the private sector.
Opportunities presented by AI could contribute as much as $90 billion to the Philippine economy in the next seven years, Peter Maquera, Microsoft Asia Pacific chief executive officer for the Philippines, said during the BusinessWorld Economic Forum 2023 on May 25.
