Chiz seeks jail, fines for malicious use of AI to defraud public

Senate President Francis “Chiz” Escudero has filed a bill seeking prison terms and heavy fines to combat the malicious use of artificial intelligence (AI) in spreading false information, defaming individuals, and promoting fraudulent investment schemes.

Escudero warned that while AI can be a powerful tool for education, research, and productivity, it is increasingly being exploited to deceive the public and damage reputations.

“Used properly, AI could serve as a powerful tool for education, business, and other fields for improving productivity, research, and finding solutions to complex problems," he said.

"However, the reality is that AI is being exploited by some to cause personal harm or undermine public trust,” he added.

Under Senate Bill 782, or the Physical Identity Protection Act, the Senate leader proposes that individuals who create, distribute, or share AI-generated content using another person’s physical likeness without consent will face criminal charges—regardless of the medium or platform used.

Escudero stressed the urgency of the bill, citing the growing number of AI-generated content falsely portraying celebrities, business leaders, and politicians endorsing products or investment schemes without their knowledge or permission.

If left unchecked, he added, these nefarious activities will continue to multiply and victimize more unsuspecting individuals.

“Madalas makikita natin ang ilang mga pulitiko at pati na ang mga malalaking negosyante na tila may tinutulak na produkto o investment na hindi mo alam kung lehitimo, pero ang katotohanan ay ginagamit lang ang imahe nila sa pamamagitan ng AI na walang anumang pahintulot galing sa kanila (We often see some politicians and even prominent businessmen appearing to endorse a product or investment that you can't be sure is legitimate, but the truth is, their image is being used through AI without any permission from them),” he added.

The Escudero bill proposes jail time and fines, as well as absolute perpetual disqualification from office if the offenders are government officials or employees, to stop the unauthorized use of one’s physical attributes for commercial or public use.

The bill prescribes the penalty of imprisonment of one to two years or a fine not exceeding P200,000, or both, for individuals who create, generate, or share content containing a person’s physical attributes without prior consent or legal basis.

If the illegal content intends to acquire financial gain or profit, SBN782 calls for a jail time of two to four years or a fine of P200,000 to P400,000, or both.

The proposed measure imposes an even higher penalty of 4-6 years of prison term or a fine of P400,000 to P600,000, or both, for content designed to facilitate or commit crime or fraud.

If the scheme is to acquire financial gain or profit and to facilitate or commit a crime or fraud, the Senate President is proposing an imprisonment of up to 12 years or a fine of P600,000 to P1 million, or both.

If the offender is a public official or employee, he or she will be penalized with absolute perpetual disqualification from public office, on top of the maximum penalties prescribed under the bill.

Certain exemptions are included in the bill, particularly if the use of physical attributes of a person in an AI-generated content is undertaken in good faith, such as the factual reporting and documentation of matters concerning public interest by the media.

“These interventions provide the government with the wherewithal to address emerging threats, ensure accountability in the use of AI technologies, and promote creativity and innovation without compromising personal rights and liberties, legitimate speech, journalism and news coverage, academic and educational research, documentary and historical pieces, and other similar works,” Escudero emphasized.