MESSAGE OF SUPPORT
Arsenio M. Balisacan, PhD
Secretary, National Economic and Development Authority
Launch of the National AI Strategy Roadmap 2.0 and the Center for AI Research (CAIR)
The Westin Manila, Ortigas Center, Mandaluyong City
July 3 2024 | 3:30 PM
- To my colleague in the Cabinet, DTI Secretary Fred Pascual,
- To former Cabinet members who are here, I saw my NEDA predecessor, Karl Chua,
- Former DTI Secretary Greg Domingo,
- Officials and colleagues from the government,
- Our esteemed partners from the private and development sectors as well as the academe,
- And to the rest of our distinguished guests and champions of artificial intelligence (AI) who are present here today,
- Ladies and gentlemen, good afternoon.
On behalf of the National Economic and Development Authority, we wish to reaffirm our strong support for the National AI Strategy Roadmap 2.0. As we have supported the inaugural National AI Roadmap, we renew our commitment to the government’s vision of transforming the Philippines into an “AI Center of Excellence.”
The benefits of AI, having been well articulated by the panelists —particularly improving efficiency, automating tasks, enhancing decision-making, and fostering innovation — these benefits are immense. The technology is estimated to contribute USD 15.7 trillion to the global economy by 2030 according to one estimate, with the Philippines potentially gaining P2.6 trillion annually if businesses adopt AI-powered solutions. Sectors such as retail, logistics, manufacturing, and financial services can revolutionize operations and enhance performance through the use of AI, again as well articulated earlier.
Recent advancements in generative AI are particularly noteworthy. Generative AI, capable of autonomously creating content, designs, and solutions, is poised to transform industries by significantly reducing production costs. According to McKinsey, generative AI could generate between USD 2.6 trillion to 4.4 trillion annually across various sectors, also mentioned by Sec. Fred earlier, with substantial value in marketing, customer service, and product development. By integrating generative AI, the Philippines can take a leading role in creative industries, software development, and other high value-added services, further boosting our economic potential.
Ultimately, the National AI Strategy Roadmap 2.0 will strengthen the government’s capacity for sustainable digital transformation, promoting local innovation and entrepreneurship while enabling new opportunities in the digital economy. The Roadmap aligns with the strategies in the Philippine Development Plan 2023-2028, emphasizing the transformative potential of emerging technologies in job creation and socioeconomic transformation.
As AI technologies open doors for innovation, they also present workforce challenges. According to the 2023 Future of Jobs Report, shown on the screen earlier, 75 percent of companies plan to adopt AI within the next five years. Implementing the National AI Strategy Roadmap 2.0 will help ensure a fair transition to AI, supporting displaced workers through upskilling, reskilling, and training. Investing in education to create AI-related training and incorporating AI courses into existing programs will equip Filipinos with the skills to capitalize on emerging technologies, giving the country a competitive advantage, attracting more investments, and fueling economic growth.
NEDA is committed to working with the Department of Trade and Industry in implementing the Roadmap 2.0. We are committed to enabling the adoption of productivity-enhancing technologies by evaluating their potential applications, assessing their economic impacts, and helping develop responsive policy, legal, and regulatory frameworks.
To unlock opportunities such technologies enable, we must address the challenges of limited internal capacities in our public institutions and infrastructure. These factors impede the effective oversight and facilitation of AI development and regulation. The Philippines lags in the government’s readiness to implement AI based on the 2023 Government AI Readiness Index developed by Oxford Insights. With this, adequate and effective digital infrastructure must be in place.
AI technology depends on real-time data exchange and processing capabilities, requiring high-speed internet and vast data storage solutions. A modern digital infrastructure ensures these technologies operate efficiently, bringing innovations and efficiencies in sectors like healthcare, finance, and urban planning, among others, thereby enhancing service delivery and driving economic growth and technological advancement.
To strengthen the country’s internet infrastructure and enhance digital connectivity, NEDA, in collaboration with other government champions, strongly advocates for the passage of the Konektadong Pinoy Act or the Open Access bill. By promoting access to affordable and better-quality internet services, this legislation will allow the country to harness the full benefits of AI.
So to end, as we stride into an exciting future, we would like to thank the DTI for championing the adoption of AI to boost our economy’s competitiveness. Together, let us work toward sustaining rapid and inclusive economic growth and enabling a digitally empowered and inclusive society.
Thank you.
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