EDITORIAL

The need for the Philippines to come up with AI regulation

We live in the age of intelligent machines that permeate our
lives in numerous subtle and not-so-subtle tasks. Most recently,
artificial intelligence has unveiled its capacity to perform tasks
that could only be performed by a human with specialized
knowledge, expensive training, or a government license (Scherer,
2016). 2

1 Scherer, Matthew U. (2016). Regulating Artificial Intelligence Systems: Risks, Challenges, Competencies, and
Strategies. Harvard Journal of Law & Technology, Volume 29, Number 2 Spring 2016, 353–400.
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2609777
2 Scherer, Matthew U. (2016). Regulating Artificial Intelligence Systems: Risks, Challenges, Competencies, and
Strategies. Harvard Journal of Law & Technology, Volume 29, Number 2 Spring 2016, 353–400.
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2609777

A new wave of AI systems may also have a major impact on
employment markets around the world. Shifts in workflows
triggered by these advances could expose the equivalent of 300
million full-time jobs to automation. 3 Goldman Sachs economists
estimate that roughly two-thirds of U.S. occupations are exposed
to some degree of automation by AI. They further estimate that,
of those exposed occupations, roughly a quarter to as much as
half of their workload could be replaced. 4
Researchers at OpenAI have worked out the potential
exposure to AI different occupations face – and its impact is
widespread. Around 19 percent of workers, meanwhile, could see
at least 50 percent of their tasks impacted. 5
In Southeast Asia, by 2028, a research study titled
“Technology and the Future of ASEAN Jobs,” conducted by Cisco
and Oxford Economics, examined the effects of AI on workers in
the Association of Southeast Asian Nations (ASEAN) six largest
economies, concluded that 28 million fewer workers across these
economies will be required to provide the same level of output as
today. 6
In the Philippines, major areas of displacement are jobs in
agriculture (1.2 million), wholesale/retail (880,000), and
manufacturing (380,000). Displaced workers will amount to 4.5
million, or over 10 percent of the workforce. The study cited in
the report forecasts the creation of new jobs in wholesale/retail
(1.3 million), transportation (490,000), and construction
(460,000). 7
Technological innovation has been shaping the world of work
since before the invention of the wheel. But the issue has taken
on a new urgency with the rise of AI. 8 The rise of artificial
intelligence (AI) will create a new challenge for Government
policymakers as it threatens to replace skilled workers who have
3 https://www.goldmansachs.com/intelligence/pages/generative-ai-could-raise-global-gdp-by-7-percent.html
4 https://www.goldmansachs.com/intelligence/pages/generative-ai-could-raise-global-gdp-by-7-percent.html
5 https://www.euronews.com/next/2023/03/23/openai-says-80-of-workers-could-see-their-jobs-impacted-by-ai-these-
are-the-jobs-most-affe
6 https://www.telecomreviewasia.com/news/featured-articles/3441-artificial-intelligence-in-asia-can-ai-threaten-jobs-
in-asean-countries
7 https://business.inquirer.net/266682/automation-ai-seen-killing-more-ph-jobs
8 https://voices.ilo.org/podcast/does-artificial-intelligence-threaten-decent-work

not previously been vulnerable to technological change. 9 AI has
the potential to help human beings maximize their time, freedom,
and happiness. At the same time, it can lead us towards a
dystopian society. Finding the right balance between technological
development and human rights protection is an urgent matter on
which the future of the society we want to live in depends. 10
Given the risks of unregulated use of AI, it is high time that
the Philippines must craft its own law on artificial intelligence.

9 https://www.irishtimes.com/business/2023/06/15/government-needs-policy-response-to-ai-challenge-for-skilled-
workers-top-official-warns/
10 https://www.coe.int/en/web/commissioner/view/-/asset_publisher/ugj3i6qSEkhZ/content/in-the-era-of-artificial-
intelligence-safeguarding-human-rights/pop_up