Former chief economist seeks to transform Ayala into data-driven organization

Karl Kendrick Chua, who spearheaded the Philippines' most significant fiscal overhaul in decades, is now focused on data, artificial intelligence (AI) and innovation.

Chua served as undersecretary at the Department of Finance (DOF) and later as the country's chief economist, heading the National Economic and Development Authority (NEDA) during the COVID-19 pandemic. He gained national recognition for designing tax reform measures and market liberalization reforms that have bolstered the Philippines' fiscal and economic health. Now, as managing director and group head for data science and AI at Ayala Corp., Chua is using data and technology to serve Filipino consumers through one of the country's most influential business groups.

Chua's work on tax reforms established his reputation for data-driven policy. His current focus is at Ayala, the Philippines’ oldest and most diversified conglomerate, with interests including banking (Bank of the Philippine Islands), telecommunications (Globe Telecom), fintech (GCash), real estate (Ayala Land), healthcare (AC Health), energy (ACEN), logistics (AC Logistics) and transport (ACMobility).

In an interview with the Manila Bulletin, Chua explained his new mission. Chua expanded Ayala Analytics, a team focused on building the technological infrastructure, governance framework and cultural shift to embed data and AI across the business. “AI is a people play, not just a tech play. The tech is actually the easy part,” Chua said. “Before we can become an AI-driven organization, we have to become a digitally transformed organization. And before that, we have to improve our business process.”

His team, comprising about 10 members and several interns, collaborates with over 200 analytics professionals across Ayala's businesses. They develop a group-wide AI strategy and implement applications such as route optimization in logistics, customer traffic analysis and personalization in malls and healthcare, and drone-powered monitoring and prediction in renewable energy (RE).

During a commencement address at the University of the Philippines (UP) National Graduate School of Engineering last year, Chua recounted a question from his nine-year-old son, Keid Ashby, after visiting his office: “Daddy, what do you do in Ayala?” Chua told him he worked on data science and AI. The follow-up question was: “How does that exactly benefit the planet?”

Chua said the question stumped him. “I struggled to articulate an answer. Perhaps that is what a Miss Universe candidate feels during the ‘question and answer’ portion,” he said. He added that the question addresses the core of his current work.

Ayala’s AI strategy is built on three layers: "Defend," "Extend," and "Upend."

"Defend" involves establishing digital foundations such as cybersecurity, quality data and governance protocols for responsible AI deployment. "Extend" focuses on enhancing current business processes with AI tools, such as using generative AI like Microsoft Copilot to summarize meeting discussions and identify action points. The "Upend" layer aims to create entirely new AI-driven products or services. For example, GCash’s GScore is an AI-generated credit scoring system designed to expand credit access while maintaining low default rates.

Chua said not all Ayala business units are ready for "upend," but all can "extend" their capabilities through AI. “Everyone has to embrace it. If the transition from manual to computer and then to the internet was difficult, this one is more difficult—but it has to be done,” he said.

Asked whether AI is a friend or foe, Chua said: “I think it is a tool that many people can use to help themselves improve, and in the process, help improve the company, and in the process, offer better products or services to the customers.”

He acknowledged fears about AI. “If the internet as a tool made some people very scared, AI is much bigger in scope,” he said.

To address these concerns, Chua is leading a comprehensive reskilling and retooling effort within Ayala. His team produces a weekly AI digest, conducts technical workshops, and manages executive courses to ensure staff understand how AI works and how it can be ethically and effectively integrated into operations.

“The job may be replaced,” Chua said. “But our objective is to make sure the person doing the job has a different skill set—an AI skill set—so that he or she can do something better.”

Chua's vision extends beyond corporate performance, as he views AI as a tool to address long-standing inequalities in Filipino society.

In his UP speech, Chua highlighted how the COVID-19 pandemic worsened disparities in education, healthcare and income. “We cannot create a prosperous society if there is huge inequality,” he said. “While we cannot control outcome inequality, we can give every Filipino an equal opportunity to succeed.”

He proposed several AI-driven solutions, including an app similar to Singapore’s LifeSG to streamline citizen-government interactions, AI-assisted route planning for more efficient public transport, drones and sensors to help farmers increase yields and secure fairer prices, and mapping cell tower coverage to ensure educational connectivity in underserved communities.

Chua also posed his son's question to the graduates and to those working in technology: “How will your work exactly benefit the planet?”

At Ayala, Chua is also supporting the group's transition toward smart, sustainable cities. “Connectivity of people and information—basically roads, transport and ICT [information and communications technology]—is not great today. A smart city will integrate them better,” he said. With partners like Ayala Land, he envisions communities powered by solar energy, populated by electric vehicles (EVs) and driven by citizen data, all optimized through AI.

Chua stresses that innovation must be accompanied by responsibility. “We now have to upgrade from just thinking about data privacy and governance into AI governance,” he said.

Ayala is collaborating with partners such as the National University of Singapore (NUS) and international regulatory bodies to refine its AI ethics and safeguard systems. “Doing AI is not magic. It requires solid foundations,” Chua said. “If organizations are unable to do AI, chances are their foundations are not ready.”

Chua is proud of Ayala’s partnership with UP’s AI program. “There are many data science courses, but there’s only one AI program—and that is in the UP College of Engineering,” he said.

Ayala supports the program through internships, scholarships and faculty research collaborations, providing students with real-world exposure and fostering talent for national development. “We also commission nation-building projects that don’t benefit Ayala directly, but benefit the country broadly,” he added.

Despite moving into corporate life, Chua said he remains guided by public purpose. “Our purpose is something bigger—how do we become better in what we do and what we offer to our customers through better use of data?”

He closed his UP address with a call for courage and integrity, quoting Theodore Roosevelt’s “Man in the Arena” speech: “The credit belongs to the man who is actually in the arena… who strives valiantly… who errs… but who does actually strive to do the deeds.”

For Chua, the arena has shifted from government halls to the boardroom, from tax codes to algorithms, but his goal remains the same: building a more inclusive, innovative and intelligent future for the Filipino people.

Chua's work at Ayala reflects his background in public policy and his focus on digital progress.