ARTIFICIAL intelligence (AI) has the potential to drive economic growth, enhance productivity, and foster innovation across various sectors in the country, the National Economic and Development Authority (NEDA) has said.
A policy note from the NEDA Office of the Undersecretary for Legislative Affairs Krystal Lyn Tan Uy released on Friday, February 7, explored AI’s potential to drive economic growth, boost productivity, generate jobs, and enhance public services in the Philippines.
It identified key barriers to AI adoption, maps ongoing initiatives, and outlines priority policy actions to ensure responsible and effective AI integration into the country’s development agenda.
According to the policy note, AI will play a critical role in shaping the future of the country’s business process and outsourcing (BPO) sector.
Citing the IT and Business Process Outsourcing Association of the Philippines, the policy note said AI-driven services, such as learning processes and knowledge transfer and data analytics, will be major growth areas for the industry.
For education, the policy note said AI has the potential to address persistent challenges, especially in remote and underserved areas.
It added that AI tools can analyze performance data and provide real-time feedback on teaching effectiveness, help tailor educational experiences, and improve engagement through personalized learning environments.
NEDA’s policy note, citing a report by the Philippine Institute for Development Studies said that AI can augment the capabilities of healthcare workers, enabling them to focus on more complex tasks while AI handles routine processes.
Aside from these, the policy note also highlighted AI’s impact on banking and finance.
“AI applications are able to process and analyze data to improve credit decisions, detect fraud and threats, address financing gaps, and facilitate the extension of financial services to individuals and businesses which would otherwise have no access to these services,” the policy note said.
NEDA also cited AI’s potential to boost growth in the agriculture sector.
“Different applications of AI may significantly assist the agriculture sector. AI-based surveillance systems may facilitate the efficient monitoring of crops, detection of pests, and diagnosing soil faults. Likewise, AI applications can forecast weather patterns and assess crop health,” the policy note said. “Agricultural robots can also perform labor-intensive and demanding tasks.”
To maximize AI’s potential in the Philippines, the policy note cited the need to have a unified national AI strategy to align efforts, reduce inefficiencies, and unlock AI’s full potential across the economy.
The policy note also cited the need to expand digital infrastructure, strengthen data governance, and develop human capital. (PNA)
