AI Policy and Governance in Philippines: Framework for Policymakers

National AI Readiness

Philippines, population 116 million, GDP per capita $4,079, faces both opportunities and governance challenges in the AI era. Labor force: 49 million. AI adoption: Growing; major BPO/IT-BPM hub ($32B industry) facing AI disruption; government AI roadmap. GDP growth: 6.0%.

Labor Market Policy

Unemployment: 3.8%. Average wages: PHP 50,000-60,000 (~$830-1,000 USD). Minimum wage: PHP 645/day (NCR, 2025); varies by region.

Priority Sectors for Transition Programs

BPO/call centers (1.4M workers at risk), data entry, basic financial processing, electronics assembly

Digital Infrastructure Gaps

Internet: 73%. Literacy: 96%. STEM graduates: ~150,000 annually.

Policy Recommendations

• AI Ethics: Guidelines for AI in high-stakes sectors
• Data Protection: Privacy regulations that enable innovation
• Workforce Transition: AI reskilling programs proportional to disruption
• Innovation: Tax incentives for responsible AI development

Fiscal Context

BPO industry (8% of GDP, 1.4M direct jobs) faces severe AI disruption, remittance dependency, infrastructure gaps, typhoon vulnerability, inequality