Philippines: Emerging Frameworks for Safe and Inclusive Automation

The Philippines is pursuing comprehensive AI legislation through the AI Development and Governance Act of 2026, consolidating over 20 separate bills filed across multiple congressional sessions. While no binding AI law is yet in force, the country has rapidly built institutional foundations: the National AI Strategy Plan (NAIS-PH) was approved in May 2025, the National Privacy Commission issued AI-specific guidelines in December 2024, and the National AI Center for Research and Innovation (NAICRI) was formally launched in February 2026. As 2026 ASEAN Chair, the Philippines is positioning itself as a regional voice on inclusive and responsible AI governance. The approach blends legislative ambition with voluntary frameworks, sector-specific regulation in finance and health, and strong data privacy enforcement under the Data Privacy Act of 2012.

The Philippine Congress is consolidating more than 20 AI-related bills into the unified AI Development and Governance Act of 2026. Key legislative proposals include Senate Bill No. 25 (the Artificial Intelligence Research and Adoption Act, or AIRA) filed by Senator Alan Peter Cayetano in July 2025, and House Bill 2827, which proposes an AI Bill of Rights guaranteeing transparency, explainability, and the right to human review. The National AI Strategy Plan (NAIS-PH) was approved by the National Economic and Development Authority in May 2025, establishing a whole-of-government roadmap for AI adoption. The Department of Trade and Industry updated the National AI Roadmap to version 2.0 (NAISR 2.0) in July 2024, focusing on industry readiness and competitiveness. The National Privacy Commission issued NPC Advisory 2024-12 in December 2024, providing guidelines on AI systems that process personal data, effectively extending Data Privacy Act protections to automated decision-making. The Bangko Sentral ng Pilipinas launched BSP Circular 1153 establishing a regulatory sandbox for AI-powered fintech solutions. President Marcos signed Executive Order No. 69 creating the State of the Nation on AI (SONAI 2026) report initiative in January 2026, requiring agencies to assess AI readiness.

Government agencies across all departments are affected as NAIS-PH mandates AI integration in public service delivery and requires agencies to develop AI readiness assessments under SONAI 2026. Financial institutions face direct regulatory requirements through BSP Circular 1153 and NPC Advisory 2024-12 governing automated decision-making. Technology companies and AI developers will need to comply with forthcoming legislation covering transparency, accountability, and risk assessment obligations. Healthcare providers are increasingly impacted as the Philippines joined the Global Regulatory Network (GRN) on HealthAI in March 2026, signaling alignment with international standards for AI in medical applications. Business process outsourcing (BPO) firms, which employ over 1.7 million Filipinos, face transformation as AI augmentation reshapes the sector. Startups and SMEs benefit from incentives under the proposed legislation and NAISR 2.0 programs designed to democratize AI access. Educational institutions are targeted through NAIS-PH workforce development programs to address the estimated 200,000 AI-skilled worker shortage by 2028.

The Philippines' AI governance approach is built on several core principles reflected across its legislative proposals and policy frameworks. Transparency and explainability are central, with HB 2827's proposed AI Bill of Rights requiring that individuals be informed when interacting with AI systems and given understandable explanations of automated decisions. Inclusivity and equity drive the NAIS-PH strategy, which explicitly targets reducing the digital divide and ensuring AI benefits reach rural communities and underserved populations. Data privacy and individual rights form a strong foundation through the Data Privacy Act of 2012, reinforced by NPC Advisory 2024-12 extending protections to AI processing. Human oversight is emphasized across proposals, with requirements for meaningful human review of high-impact automated decisions. Innovation and competitiveness are balanced against regulation, with the government targeting AI to contribute USD 92 billion to GDP by 2030. The ASEAN AI Guide and OECD AI Principles are referenced as guiding frameworks, reflecting the Philippines' commitment to international alignment. Accountability mechanisms in proposed legislation include mandatory impact assessments, audit requirements, and designated responsible officers for organizations deploying high-risk AI systems.

Businesses operating in the Philippines should prepare for a more structured AI regulatory environment as the consolidated AI Development and Governance Act progresses through Congress. Companies processing personal data through AI systems must already comply with NPC Advisory 2024-12, which requires privacy impact assessments, transparency notices, and data subject rights for automated processing. Financial services firms can leverage BSP's regulatory sandbox under Circular 1153 to pilot AI-driven products, but must meet enhanced reporting and consumer protection requirements. The BPO sector should accelerate AI augmentation strategies as NAISR 2.0 identifies workforce transformation as a national priority, with government upskilling programs creating partnership opportunities. Healthcare and pharmaceutical companies should note the Philippines' GRN membership, which will likely introduce international standards for AI medical devices and clinical decision support. Foreign investors benefit from the Philippines' improving digital infrastructure, with the DICT targeting 95% broadband coverage by 2028 and establishing AI-ready special economic zones. The proposed legislation includes incentives such as tax holidays and grants for AI R&D activities, particularly for companies establishing development centers outside Metro Manila. Early engagement with NAICRI and DTI on standards development can position businesses favorably ahead of final regulations.

The most critical development is the progress of the AI Development and Governance Act of 2026 through Congress, with committee hearings expected to intensify in the second half of 2026 as the consolidation of 20+ bills advances. The Philippines' role as 2026 ASEAN Chair will influence regional AI governance discussions, potentially accelerating domestic legislation to demonstrate leadership. NAICRI's first year of operations will set the agenda for national AI research priorities and public-private partnerships. The NPC is expected to issue additional AI-specific advisories building on 2024-12, potentially addressing generative AI, biometric processing, and cross-border data transfers. BSP's regulatory sandbox results will shape broader fintech AI regulation, with initial pilot assessments due by Q3 2026. The SONAI 2026 report, mandated by Executive Order No. 69, will provide the first comprehensive government-wide assessment of AI adoption and readiness. DICT's planned National AI Ethics Board could establish soft-law standards ahead of binding legislation. The proposed AI Bill of Rights provisions in HB 2827 may set precedent for individual rights frameworks across ASEAN. International developments including the Philippines' participation in the Global Partnership on AI and bilateral agreements with South Korea and Japan on AI talent exchange will also shape the governance trajectory.