Experts warn AI could widen digital divide in the Philippines
Artificial intelligence (AI) has the potential to transform the Philippine economy, but without urgent reforms it could also widen the country’s digital divide, experts warned during the 11th Annual Public Policy Conference (APPC) held on September 18.
The event, organized by the Philippine Institute for Development Studies (PIDS) as part of the Development Policy Research Month, gathered local and international policymakers, academics, and technology specialists to examine how governance must adapt to the age of AI.
AI as promise and peril
TECH DILEMMA Without careful planning, AI technology could deepen divides between urban and rural, rich and poor, connected and disconnected. CONTRIBUTED PHOTO
In his opening remarks, PIDS President Philip Arnold Tuaño highlighted AI’s transformative power, describing it as “an enabler of connections, a driver of knowledge creation, and a catalyst for adaptation in nearly every field.”
However, he cautioned that the technology could concentrate benefits in the hands of a few if the Philippines does not strengthen its infrastructure, governance, and skills development.
Socioeconomic Planning Secretary Arsenio Balisacan echoed the warning, stressing that the challenge is no longer theoretical.
“AI is here,” he said. “Without decisive action, only large corporations and urban centers will benefit, leaving rural communities and small enterprises further behind.”
Balisacan pointed to the recently enacted Konektadong Pinoy Law, also known as the Open Access in Data Transmission Act, as a step in the right direction. The law aims to spur competition in telecommunications, lower costs, and improve nationwide connectivity.
Global lessons, local barriers
Speakers from international institutions underscored that the Philippines must frame AI adoption as a governance issue, not just a technological one.
Christopher Lamont of Tokyo International University said governments must go beyond promoting innovation to ensuring safeguards. “The real test of AI is not just whether it spurs growth, but whether it safeguards citizens,” he said, calling for a rights-based approach to adoption.
Naoto Kanehira, senior digital development specialist at the World Bank, noted that the country’s fragmented and unreliable datasets are a critical bottleneck. “Data is often inaccurate, incomplete, not sharable, or even not machine-readable,” he said. Without trustworthy and integrated data, he added, AI cannot deliver the smarter and faster public services that policymakers hope for.
Unequal access and digital literacy gaps
Even with improved data systems, millions of Filipinos remain unable to participate in the digital economy. Internet penetration is uneven, particularly in rural areas, while affordability and digital literacy remain persistent challenges.
Information and communications technology policy analyst Mary Grace Mirandilla-Santos said the risk is that AI will widen existing inequalities. “AI will empower those already connected while excluding those still left behind,” she said.
This problem is not unique to the Philippines. Across Southeast Asia, the uneven spread of broadband and skills has raised fears that AI may entrench divides between urban and rural areas, or between large firms and small enterprises. Countries such as Singapore and Malaysia have rolled out national AI strategies that pair investments in infrastructure with skills training to mitigate such risks.
Imported technology, local context
Another challenge lies in the very design of AI systems. Many models are developed abroad and may not reflect local needs or cultural contexts.
Arifah Sharifuddin of the Tech for Good Institute cautioned that deploying foreign-built models without adaptation could backfire. “Unless adapted to Philippine conditions, they risk reinforcing bias and failing to meet local needs,” she said.
AI systems trained primarily on data from developed economies could misinterpret or underrepresent Philippine realities, from language nuances to socioeconomic conditions. Experts urged policymakers and developers to invest in localized datasets and applications.
Balancing innovation and protection
Science and Technology Undersecretary Leah Buendia emphasized that the government must strike a balance between encouraging innovation and protecting citizens.
She outlined three priorities for advancing AI governance: placing ethics, human rights, and sustainability at the center of adoption; fostering collaborative, whole-of-society governance; and preparing institutions to be “future-ready” for the challenges of AI.
“Let us remember that good governance is not measured by how advanced our technologies are, but how well they advance the security and prosperity of our people,” Buendia said.
Building an inclusive AI future
Experts agreed that addressing the risks of AI requires urgent reforms in infrastructure, governance, and education. Expanding affordable broadband, investing in digital literacy, and building reliable data systems are seen as the foundation for inclusive growth.
At the same time, safeguards such as privacy protections, transparency requirements, and human rights standards must be embedded into AI policy frameworks. The Philippines’ recently passed Konektadong Pinoy Law was cited as an example of how regulatory reform can open the door to wider digital participation.
The debate also highlighted the need for cross-sector collaboration. Governments, businesses, academia, and civil society must work together to ensure that the adoption of AI strengthens, rather than undermines, social equity.
The bigger picture
The concerns raised at the APPC echo global debates about AI’s role in society. The European Union, for example, has moved ahead with an AI Act that seeks to regulate the technology based on risk levels. In the United States, executive orders have stressed both the economic potential and the national security implications of AI.
For the Philippines, the stakes are especially high. The country’s young, digitally savvy population could benefit enormously from AI-driven services in education, healthcare, and commerce. But without careful planning, the same technology could deepen divides between urban and rural, rich and poor, connected and disconnected.
As the APPC concluded, participants returned to a central theme: AI governance is not only about technology but about equity, rights, and the future of national development.
J.G. AMOR