AI adoption urgency rises as Philippines risks missing growth gains — DICT chief

By Ashley Erika O. Jose, Reporter

THE PHILIPPINES should accelerate artificial intelligence (AI) adoption by upgrading infrastructure and boosting regulation, as slow uptake could prevent the country from fully capturing productivity gains, government and industry leaders said.

Information and Communications Technology Secretary Henry Rhoel R. Aguda said AI governance should balance innovation with safeguards, stressing that trust is central to wider adoption.

“AI governance can’t be about choosing between innovation and protection,” he said at the BusinessWorld Economic Forum on Monday. “We need both. And what we really need to protect is trust. Because without trust, adoption slows down, and the benefits won’t reach the people who need them most.”

Mr. Aguda said his agency is prioritizing data protection and cybersecurity as AI tools become more embedded in business and public services, while also increasing the sophistication of cyberthreats.

“AI is not coming; it’s already here,” he said. “It’s already part of how we work, learn and deliver services.”

Deloitte Philippines Country Head Ramon Chito Ramos said AI adoption among companies is expanding, but human capability gaps are slowing effective use.

“There are big changes that need to be done on the human side,” he told the forum. “Adoption is surprisingly slow, but the pace of change is not,” he added, noting that organizations struggle most with workforce readiness.

He said the country must upgrade digital infrastructure to support AI workloads, noting that policy progress has not been matched by execution speed.

Philippine companies could unlock as much as P2.8 trillion in economic value by 2030 through generative AI adoption, according to global tech advisory firm Access Partnership.

“We’re definitely behind and it’s something we need to recognize,” Mr. Ramos said. “We have progressed around governance and policy. AI infrastructure is our focus now.”

Mr. Aguda said data center capacity in the Philippines is expected to reach about 1.5 gigawatts by 2028, supporting increased AI processing demand and cloud-based services.

UNEVEN READINESS
Jonathan Cristobal, director of Globe Business, the enterprise arm of Globe Telecom, Inc., said AI adoption among companies is broadly positive, but uneven readiness remains a key constraint.

“Adoption rates have been good, but readiness remains uneven,” he said. “Infrastructure, workforce capability remains challenged, together with governance and digital maturity. All of these continue to vary organization per organization.”

He said companies are increasingly willing to integrate AI into operations but struggle with execution and scaling strategies. He also called for stronger incentives to encourage early adoption.

“One thing really is the incentivization of companies — tax incentives where possible, especially for companies who are owning upskilling and training,” he told BusinessWorld on the forum sidelines. “The government should incentivize retraining.”

United Nations Development Programme Philippines economist Mohamed Shahudh said AI adoption challenges are compounded by high internet costs, limited digital literacy and fragmented governance.

He said the Philippines should address widening gaps between technological capability and vulnerability across people, the economy and institutions.

“AI’s benefits to humanity will be realized through a much more complex interaction of two widening gaps: capability and vulnerability; across three pillars of human development: people, economy and governance,” he said.

He added that a unified policy framework is needed to clarify institutional roles, as businesses seek clearer guidance on implementation responsibilities.

Mel Migrino, country head of software firm Gogolook Philippines, said public-private partnerships (PPP) could help accelerate adoption, especially as companies independently develop AI systems and cybersecurity frameworks.

“The technology and cybersecurity industry is oversaturated,” she said. “It is ironic to see that there are cybersecurity attacks. We are in a transition phase, but still vulnerable. There is still a lot of work to do. We’re lagging behind ASEAN-5. It’s good to infuse PPPs.”

She said AI’s impact depends on how governments, companies and workers manage risks alongside productivity gains.

Mr. Aguda said the Department of Informaiton and Communications Technology (DICT) is developing principle-based and flexible regulation to keep pace with rapid technological change.

“At the DICT, our view is simple: rules must be principle-based and flexible,” he said. “Technology moves too fast for rigid regulation.”

“That’s why we are strengthening our national AI strategy roadmap, embedding ethics, transparency, accountability, and human oversight into how AI is used in the country,” he added.