NEDA: AI key to boosting productivity, jobs, and innovation

Artificial intelligence (AI) is poised to become a major driver of economic growth, productivity, and innovation in the Philippines, according to a recent policy note from the National Economic and Development Authority (NEDA).

The report, released by NEDA’s Office of the Undersecretary for Legislative Affairs Krystal Lyn Tan Uy, outlines AI’s potential to transform key industries, generate jobs, and enhance public services. It also identifies existing barriers to AI adoption and proposes strategic policies to ensure responsible integration.

AI is expected to play a crucial role in shaping the future of the country’s business process outsourcing (BPO) sector. According to the IT and Business Process Association of the Philippines, AI-driven services—such as knowledge transfer, data analytics, and automation—will be major growth areas for the industry.

In education, AI tools can enhance learning experiences by analyzing performance data, providing real-time feedback, and personalizing teaching methods. This is particularly significant for improving access to quality education in remote and underserved areas.

The healthcare sector is also set to benefit from AI adoption. According to a study by the Philippine Institute for Development Studies, AI can assist medical professionals by handling routine processes, allowing them to focus on more complex patient care.

AI’s impact extends to banking and finance, where advanced algorithms can improve credit decisions, detect fraud, and expand financial services to underserved individuals and businesses. In agriculture, AI-powered surveillance systems can help monitor crops, detect pests, assess soil conditions, and even forecast weather patterns, contributing to improved food security and sustainability.

To fully harness AI’s potential, NEDA emphasized the need for a unified national AI strategy to align efforts across industries, reduce inefficiencies, and unlock economic opportunities. The report also stressed the importance of expanding digital infrastructure, strengthening data governance, and investing in AI education and workforce development.

With AI rapidly evolving, NEDA underscored the urgency of policy action to ensure that the Philippines remains competitive in the global digital economy while promoting inclusive and responsible AI adoption.