The Department of Trade and Industry is pushing for the establishment of the Center for Artificial Intelligence Research, however, it remains "unfunded" under the proposed 2024 National Expenditures Program.

During the hearing of Senate Committee on Finance's Subcommittee "M" on DTI's proposed P7.909 billion budget for the fiscal year 2024 on Tuesday, Trade Secretary Alfredo Pascual emphasized the idea would help the country's Micro, Small, and Medium Enterprises to effectively adopt "artificial intelligence in their business operations.

"This is a research [and development] center. The model is the AStar of Singapore…It's industry-oriented, it's not academic research. It's a way to help MSMEs to adopt AI in their operations," Pascual said, citing that large companies in the country "can take of themselves" to implement AI solutions in their businesses.

"But this SMES would need assistance and this is the center that could do that plus the continuing research in the impact of AI on employment which jobs will be affected," he said.

The issue of AI ethics will also be addressed through CAIR, he added.

"We are working this out, actually with some business groups that can donate…In fact, we have been offered already a place," the DTI chief said.

Pascual explained that the CAIR has been included in the DTI's plan for revitalizing Philippine industries under the Philippine Development Plan.

Meanwhile, DTI's Competitiveness and Innovation Group, Undersecretary Rafaelita Aldaba said the agency has been requesting funds, amounting to P200 million, for the CAIR since two years ago.

Aldana did not give further details as to why the Department of Budget and Management disapproved their requests.

Stressing the importance of the AI program, Senate President Pro Tempore Loren Legarda lamented there must be a reason why the CAIR did not get a budget.

Legarda asked Aldaba to further provide details on CAIR as the latter noted the DTI doesn't have enough space in their existing building,

"It's a physical center and its goal is for us to become an AI center of excellence in the region in the near future. It's going to house our data scientists, researchers, engineers who will be conducting AI [research and development] to support the needs of the industries, including MSMEs, start-ups, large companies, and multi-nationals," Aldaba said.

The CAIR is also eyed to provide capacity building and training and workshops on AI, she added "so that new products and services could come out from the idea.

However, Legarda said DTI should not wait for the physical CAIR to be set up before it starts building the capacity of Filipinos concerning AI, adding that developing a physical infrastructure may take at least two years.

"And knowing government, that's so slow. That means all the resources on AI will not ensue until the structure is done," Legarda lamented. "What I'm saying is that while the infrastructure is not yet set up, we should continue with AI capacity buildings and research."

Senator Mark Villar, who presided over the budget hearing, backed Legarda's position, noting that DTI should ensure that AI benefits the country.

"Other countries are very concerned also about what AI might mean for the labor industry and what the implications are. I think it's important that we learn how we can leverage it to help our industries," he said.

On the other hand, Pascual appealed to the Senate for an additional P300 million in funding to strengthen the DTI's consumer protection programs.

"We want to reorganize our consumer protection activity by centralizing it because you cannot expect a junior person running after hoarders or profiteers in an area where there are a lot of people of influence that are operating in the region," he said.

"So the plan that we have done, this planning, after the budget submission, is to centralize the consumer protection activity in the head office and have a quick response task force," said Pascual.

"That would require a funding of P300 million to strengthen our consumer protection activities," he added.

Villar supported the DTI's plan citing its significance amid the ongoing inflation being experienced in the country

"It is very relevant that the DTI takes a stronger role in monitoring these hoarders and manipulators," he said.

DTI Assistant Secretary Jean Pacheco said the P300 million would fund an inter-DTI strike team to increase their enforcement activities, consumer education and advocacy, complaints handling, and procurement of equipment for the certification and testing of vapes, among others.

At least P130 million of the total request will be utilized for the procurement of equipment for DTI's certification and testing of vape products, which is in line with their implementation of the law regulating e-cigarettes.