What happened
The Philippine President signed Executive Order No. 131, formally adopting the Framework as the nation’s strategic guide for artificial intelligence. The order also creates the National Artificial Intelligence Council (NAIC), an inter‑agency body chaired by the Executive Secretary and chaired by the Secretary of Economy, Planning and Development as vice‑chair. The Council will coordinate implementation of the Framework, monitor AI programs, and advise the President on policy, regulatory and legislative measures. It is tasked with forming five technical working groups covering institutions, data and R&D, capabilities, infrastructure and demand generation. Existing sector regulators retain their mandates; the order imposes no new licensing, registration or penalties on businesses.
Executive Order No. 131, signed on 12 November 2026, adopts the Framework as the Philippines’ national strategic guide for AI policy formulation, regulatory coordination, institutional development, capacity‑building and other governance measures. The order references the President’s constitutional authority over executive departments and builds on the National Artificial Intelligence Strategy for the Philippines (NAIS‑PH) approved in May 2025.
The order establishes the National Artificial Intelligence Council (NAIC), an inter‑agency body reporting directly to the President. The Council is chaired by the Executive Secretary, with the Secretary of Economy, Planning and Development serving as vice‑chair. Membership includes the secretaries of ICT, Science and Technology, Trade and Industry, Finance, Education, Labor and Employment, Budget and Management, the CHED chairperson, and the TESDA director‑general. A private‑sector representative, appointed by the President from nominees submitted by reputable business groups, will serve a three‑year term, renewable once.
The NAIC’s mandate includes keeping government AI programs consistent with the Framework, addressing policy gaps, strengthening international cooperation, and recommending policy, regulatory, fiscal, institutional and legislative measures to accelerate AI adoption while safeguarding workers and learners. It will form five technical working groups—Institutions, Data and R&D, Capabilities, Infrastructure, and Demand Generation—to develop detailed guidance, public‑private partnership models and financing mechanisms, especially for micro, small and medium enterprises and startups.
Implementation mechanisms require the Department of Information and Communications Technology to operate a digital monitoring and reporting platform, with all government agencies updating it quarterly. The Council must submit a report to the President within 30 days after each quarter and review the Framework at least every two years. The order does not create new licensing, registration, fees or penalties for private companies; existing sector regulators retain authority under current laws, and the Council may issue guidelines or recommend new legislation.
Source details: aureadalaw.com
Why it matters
The order marks the Philippines’ first comprehensive, government‑wide approach to , moving from a strategy (NAIS‑PH, approved May 2025) to an actionable framework with a dedicated council. By institutionalising AI oversight, the government aims to ensure AI development and deployment align with principles such as transparency, fairness, safety and sustainability, while also fostering international cooperation and private‑sector collaboration. The lack of new licensing or penalties means compliance will rely on existing sector regulations and future guidelines issued by the Council, creating uncertainty for businesses that must monitor evolving requirements. The establishment of technical working groups and a quarterly monitoring platform signals a shift toward data‑driven oversight and could influence regional AI policy trends, especially as the Philippines seeks to balance innovation with worker and learner protections.
The order provides the Philippines with a formal, centralized structure for , moving beyond ad‑hoc strategies to a coordinated, risk‑based approach. This could improve policy coherence across ministries and align the country with emerging global AI standards.
By principles such as transparency, fairness, human‑centricity and sustainable development, the Framework seeks to mitigate risks of bias, privacy breaches and unsafe AI deployments, which are critical concerns for a developing economy with growing AI adoption in public services and the private sector.
The absence of immediate licensing or penalty provisions places the onus on existing regulators and future Council guidelines to enforce compliance, creating a period of regulatory uncertainty for businesses that must track multiple potential requirements.
The inclusion of a private‑sector representative and the focus on demand generation for SMEs signal an intent to balance regulation with innovation support, potentially fostering a more vibrant AI ecosystem while ensuring that smaller firms receive guidance and financing opportunities.
The quarterly monitoring platform and bi‑annual framework review introduce a data‑driven oversight mechanism that could serve as a model for other Southeast Asian nations seeking to institutionalise without heavy‑handed statutory measures.
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What to watch next
Key developments to watch include: (1) the issuance of implementing guidelines or sector‑specific AI impact assessments by the NAIC; (2) how existing regulators integrate the Framework into their current mandates; (3) the composition and recommendations of the five technical working groups, especially on demand generation for SMEs and startups; (4) the quarterly reporting outcomes from the digital monitoring platform managed by the Department of Information and Communications Technology; and (5) any legislative proposals the Council recommends to the President, which could introduce new compliance obligations.
Implementation guidelines: The NAIC is expected to issue sector‑specific AI impact assessment templates, sandbox rules and compliance checklists. Monitoring the timing and content of these guidelines will indicate how quickly businesses must adapt.
Regulatory integration: Existing agencies (e.g., data privacy, telecommunications, finance) will need to align their current regulations with the Framework’s principles. Watch for joint notices or amendments that clarify obligations for AI‑enabled services.
Technical working groups output: Reports from the Demand Generation group, especially financing schemes for MSMEs, will reveal the government’s commitment to supporting AI adoption among smaller enterprises.
Quarterly monitoring reports: The ICT‑run platform will publish aggregated data on government AI projects. Trends in project types, budgets and risk assessments will provide insight into the government’s AI priorities.
Legislative proposals: Recommendations from the Council that advance to the President could result in new statutes or amendments, potentially introducing licensing, reporting or accountability requirements for private AI developers.