Artificial Intelligence Development and Regulation Act of the Philippines

Senate Offier of the Sumtap 25 AUG 14 P2:47 TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES First Regular Session RECEIVED BY: SENATE S. No. 1190 Introduced by Senator Manuel "Lito" M. Lapid AN ACT PROMOTING THE DEVELOPMENT AND REGULATION OF ARTIFICIAL INTELLIGENCE IN THE PHILIPPINES EXPLANATORY NOTE The Constitution, Art. XIV, Section 12 provides that, "[t]he State shall regulate the transfer and promote the adaptation of technology from all sources for the national benefit. It shall encourage the widest participation of private groups, local governments, and community-based organizations in the generation and utilization of science and technology." Artificial Intelligence (AI) has rapidly emerged as one of the most transformative and disruptive forces in the 21st century, reshaping industries, economies, and communities across the globe. From healthcare and agriculture to finance, education, and national security, AI technologies hold immense potential to enhance productivity, improve public services, and create new opportunities for innovation and inclusive growth. Recognizing the benefits and risks associated with Al, this proposed measure seeks to establish a legal and institutional framework that promotes the responsible development and regulation of artificial intelligence in the Philippines. While AI can contribute significantly to national development, it also poses complex ethical, legal, and social challenges- including issues of accountability, data privacy, algorithmic bias, labor displacement, and potential threats to human rights and democratic values.

This bill proposes the creation of the Artificial Intelligence Development Authority (AIDA)— a central regulatory and coordinating body mandated to oversee the ethical development, deployment, and use of Al technologies in the country. The AIDA will be tasked to: Develop a national AI strategy aligned with Philippine development goals and international standards; 1. Establish legal, ethical, and technical guidelines for AI development and use; 2. Protect the rights and welfare of individuals and communities affected by AI; 3. Promote AI research and innovation through funding, public-private- academic partnerships, and capacity-building; 4. Foster transparency, accountability, and cybersecurity in Al systems; and 5. Represent the Philippines in international Al cooperation and standard- setting efforts. This measure also defines key concepts surrounding artificial intelligence to guide implementation and provides for the necessary mechanisms to regulate AI systems through certification, monitoring, grievance redress, and penalties for non- compliance. Crucially, the bill underscores that Al development must be human-centered- respecting human dignity, rights, and freedoms-while promoting national interest, economic resilience, and technological self-reliance. In view of the increasing integration of Al into critical infrastructure, government services, and everyday life, there is an urgent need to enact forward- looking legislation that will ensure the Philippines is both competitive and prepared in the global AI landscape-while safeguarding the rights and interests of the Filipino people.

In view of the foregoing, the passage of this bill is earnestly sought.

Senate Office of thr a 25 AUG 14 P2:47 REPUBLIC OF THE PHILIPPINES REFUELE OF THE PREPARE S First Regular Session RECEIVED BY: SENATE S. No. - 1190 Introduced by Senator Manuel "Lito" M. Lapid AN ACT PROMOTING THE DEVELOPMENT AND REGULATION OF ARTIFICIAL INTELLIGENCE IN THE PHILIPPINES Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

SECTION 1. Short Title. - This Act shall be known as the "Artificial Intelligence

Development and Regulation Act of the Philippines."

SEC 2. Declaration of Policy. — It is hereby declared the policy of the State to

promote the development of fair and responsible use of artificial intelligence in the Philippines, while ensuring that its development and deployment are aligned with national priorities, socially responsible, and respectful of human rights. The State recognizes the potential of artificial intelligence to contribute to economic growth, social welfare, and national security, and commits to promote its development in a way that is transparent, accountable, and responsive to the needs of the people.

SEC. 3. Purpose. — The purpose of this Act is to promote and regulate the

deployment of artificial intelligence (AI) technologies in the Philippines to ensure that Al systems are developed, deployed, and used in a manner that is consistent with ethical principles, protects human rights and dignity, and serves the public interest. This Act aims to achieve the following objectives: 1. Promote the development of Al technologies through research and development, innovation, and entrepreneurship;

2. Protect the rights and welfare of individuals and communities affected by Al technologies; 3. Ensure that AI technologies are developed, deployed, and used in a manner that is transparent, accountable, and fair; 4. Develop the necessary infrastructure and human capital to support the development and deployment of AI technologies in the Philippines; and 5. Foster international cooperation and collaboration in the development and use of Al technologies.

SEC. 4. Definition of Terms. — For the purposes of this Act, the following terms

10 shall be defined as follows: 1. Artificial Intelligence (AI) refers to ability of machines or computer programs, systems or software that are designed to perform tasks that simulate human intelligence, such as reasoning, learning, perception, and problem-solving. 2. Al system refers to a computer system or software application that utilizes Al technologies and techniques to perform a task or make a decision, such as machine learning, deep learning, natural language processing, and robotics. 3. Al developer refers to any person, entity, or organization that develops Al technologies including software and hardware. The development of Al technologies includes among others the design, development, testing, or deployment of AI systems. 4. Al user refers to any person, entity, or organization that utilizes or benefits from Al systems, including but not limited to government agencies, private companies, and individuals. 5. AI regulatorrefers to any government agency or regulatory body that is responsible for overseeing the development and deployment of Al systems. 6. Access refers to the instruction, communication with, storing data in, retrieving data from, or otherwise making use of any resources of a computer system or communication network.

7. Alteration refers to the modification or change, in form or substance, of an existing computer data or program. 8. Computer refers to an electronic, magnetic, optical, electrochemical, or other data processing or communications device, or grouping of such devices, capable of performing logical, arithmetic, routing or storage functions, and which includes any storage facility or equipment, or communications facility or equipment directly related to or operating in conjunction with such device. It covers any type of computer device, including devices with data processing capabilities like mobile phones, smart phones, computer networks and other devices connected to the internet. 9. Computer program or Application refers to a set of instructions executed by the computer to achieve intended results. 10. Computer system refers to any device or group of interconnected or related devices, one or more of which, pursuant to a program, performs automated processing of data. It covers any type of device with data processing capabilities, including, but not limited to, computers and mobile phones. The device consisting of hardware and software may include input, output and storage components, which may stand alone or be connected to a network or other similar devices. It also includes computer data storage devices or media. 11. Critical infrastructure refers to the computer systems, and/or networks, whether physical or virtual, and/or the computer programs, computer data and/or traffic data that are so vital to this country that the incapacity or destruction of or interference with such system and assets would have a debilitating impact on security, national or economic security, national public health and safety, or any combination of those matters. 12. Cybersecurity refers to the collection of tools, policies, risk management approaches, actions, training, best practices, assurance and technologies that can be used to protect the cyber environment, and organization, and user's assets.

13. Transparency means the quality or state of being open, accountable, and easily understood.

SEC. 5. Establishment of Al Development Authority (AIDA). - An artificial

intelligence body to be known as Artificial Intelligence Development Authority (AIDA) is hereby created and established to oversee the development and deployment of AI technologies, ensuring compliance with Al ethics principles and guidelines, and protecting the rights and welfare of individuals and communities affected by AI technologies.

SEC. 6. Composition. The Artificial Intelligence Development Authority (AIDA),

under the administrative supervision of the Office of the President, shall be governed by a Board of Trustees composed of permanent and ex-officio members, as follows: 1. Permanent Board Members. The permanent members include the following: a. Executive Director of the Department of Science and Technology - Information and Communications Technology Office (DOST-ICTO) as Chairman b. Head of the ICT Industry Development Bureau of the Department of Information and Communications Technology (DICT-IIDB) as Vice-Chairman c. Head of the National Computer Center. d. One (1) representative from the private sector who should be experts in the fields of information technology specializing artificial intelligence, law, ethics, social science, and other relevant disciplines. e. One (1) representative from the academe who should be experts in the fields of information technology specializing artificial intelligence, law, ethics, social science, and other relevant disciplines. 2. Ex-Officio Members. The ex-officio members include the heads or their deputies, assistants, or next-in-rank of the following agencies: a. National Privacy Commission (NPC)

b. Department of Justice-Office of Cybercrime (DOJ-OC) c. National Intelligence Coordinating Agency (NICA) d. Armed Forces of the Philippines (AFP) Cyber Command e. Philippine National Police Anti-Cybercrime Group (PNP-ACG) f. National Telecommunications Commission (NTC) g. Securities and Exchange Commission h. Such other offices, agencies and/or units, as may be determined as necessary by the President.

SEC. 7. Meetings of the Board. The Board of Trustees of the Artificial

Intelligence Development Authority (AIDA) shall meet at least once every three months or as often as necessary at the discretion of the Chairman or at the call of any three (3) other members. The presence of majority of the permanent members and of the ex-officio members shall constitute a quorum.

SEC. 8. Secretariat. — The AIDA Secretariat serves as the implementing arm of

the Board and shall be responsible for the efficient and effective enforcement of all the provisions of this Act. It shall be headed by the Executive Director and two (2) Deputy Executive Directors. The Board shall recommend to the President of the Philippines the appointment of an Executive Director who shall be the Secretary of the Board and at the same time the executive officer having direct control and supervision of the AIDA. He/she must possess adequate knowledge, training, and experience for at least seven (7) years in the field of information technology and recently on artificial 22 intelligence. Two Deputy Executive Directors for administration and for operations shall also be appointed by the President upon recommendation of the Board. They shall possess the same qualifications as those of the Executive Director. They shall receive a salary corresponding to their position as prescribed by the Salary Standardization Law as a Career Service Officer.

SEC. 9. Regulation of AI Development and Deployment. - The AIDA shall have

the general mandate and power to oversee the development and deployment of AI technologies, ensure compliance with Al ethics principles and guidelines, and protect the rights and welfare of individuals and communities affected by AI technologies. Specifically, it shall be responsible for: 1. Developing a national Al development and regulation strategy that aligns with national priorities and international standards including but not limited to requirements for AI impact assessments, data protection, and transparency in AI decision-making. 2. Conducting research and development activities to promote the advancement of AI technology in the Philippines. 3. Providing guidance and support to Al developers and users on ethical and responsible development and deployment of Al technologies in the Philippines. 4. Establishing standards and guidelines for legal, ethical and responsible AI development, use and deployment, and enforcing them by conducting investigations and penalizing violations of said Al ethics principles, standards, and guidelines. 5. Establishing licensing and certification requirements for AI developers and deployers so that they shall be required to register with AIDA and comply with its regulations and guidelines. Failure to register or comply with the regulations and guidelines of the Council shall be considered a violation of this Act and subject to applicable administrative penalties and sanctions. 6. Ensuring that personal data collected, used, and processed by AI systems are protected in accordance with Republic Act No. 10173 otherwise known as the Data Privacy Act of 2012 and other relevant laws and regulations. 7. Developing data security and cybersecurity standards for AI systems to protect against cyber-attacks and hacking.

8. Establishing a mechanism for reporting and addressing complaints and grievances related to the deployment of Al systems in the Philippines. 9. Monitoring and evaluating the development and deployment of AI systems in the Philippines and, except when national security and interest is involved, it shall regularly report to the public on the state of AI development and its impact on society.

SEC. 10. Promotion of AI Development. - The AIDA shall establish programs

and initiatives that promote Al research and development, innovation, and entrepreneurship, with a focus on developing AI technologies that address the country's most pressing social and economic challenges. It shall promote the development of Al in the country through employment of any or combination of the following measures: 1. Providing funding and support for Al research and development activities. 2. Encouraging partnerships between academic institutions, private companies, and government agencies to promote AI development. 3. Promoting the adoption of Al in government agencies and private companies to improve efficiency and productivity. 4. Providing incentives for Al developers and users who adhere to ethical and responsible Al development and deployment practices. 5. Promoting the development of Al talent and skills in the Philippines through education and training programs.

SEC. 11. International Cooperation and Collaboration. - The AIDA shall

undertake international cooperation and collaboration in the development and use of Al technologies, including through partnerships with other countries, international organizations, and the private sector. It shall participate in international efforts to develop global norms and standards for the development and use of AI technologies and shall work to ensure that these norms and standards are consistent with Philippine laws, regulations, and values.

SEC. 12. Appropriations. - The amount necessary for the implementation of

this act shall be included in the annual general appropriations act.

SEC. 13. Implementing Rules and Regulations. — The DOST shall formulate, in

consultation with the DICT, within ninety (90) days from effectivity of this Act, and issue the necessary Implementing Rules and Regulations to carry out the implementation of this Act.

SEC. 14. Separability Clause. - If any provision or part of this Act is declared

invalid or unconstitutional, the other provisions hereof which are not affected thereby shall continue to be in full force and effect.

SEC. 15. Repealing Clause. - All laws, decrees, orders, rules and regulations,

or parts thereof, which are inconsistent with the provisions of this Act, are hereby repealed, amended, or modified accordingly.

SEC. 16. Effectivity. This Act shall take effect fifteen (15) days after its last

publication in the Official Gazette and at least two (2) newspapers of general circulation. Approved,