Puno unpacks AIDA, blueprint for tomorrow

It is refreshing to find that the usually hard-nosed political hawk Ronnie Puno, shows the passion of a schoolboy when it comes to the prospects of the emerging artificial intelligence (AI) technology.

From answering customer calls in business process outsourcing (BPO) offices to managing the computer systems behind driverless cars, tomorrow’s jobs may look vastly different from what Filipinos know today.

Puno, House Deputy Speaker, wanted the country to be ready for that shift, not merely as a source of workers and raw materials, but as a country capable of building the industries powering the artificial intelligence revolution.

Through House Bill 11758, Puno is pushing to create an Advanced Industries Development Authority (AIDA) and a 1,350-hectare advanced industries zone in New Clark City, Tarlac, envisioned as a hub for strategic technology, advanced manufacturing, and innovation.

For the Antipolo City first district representative, the country’s existing mineral resources, semiconductor industry and pool of computer professionals provide an opportunity to participate in an industry that he believes will reshape the global economy.

Speaking on Daily Tribune’s Straight Talk, Puno explained that artificial intelligence is supported by an extensive industrial ecosystem involving minerals, manufacturing, semiconductors, research and skilled labor.

He compared it to automobile manufacturing, where different components are produced in separate facilities before being brought together for assembly.

“It’s the same thing with artificial intelligence. Artificial intelligence does not come out of the air. It comes from a lot of elements that compose it, which comprise the artificial intelligence ecosystem,” he said.

Puno said the Philippines could participate in different parts of this supply chain, pointing to its nickel and copper resources and established presence in semiconductor manufacturing.

He also cited the country’s computer professionals, particularly programmers and systems analysts, whose skills he said are recognized internationally.

“Our programmers, our systems analysts are rated as among the best in the world,” he said.

For Puno, these capabilities should translate into more opportunities for Filipinos to work in advanced industries at home rather than seek employment overseas.

Building beyond ecozones

The proposed AIDA seeks to establish a dedicated government authority to oversee the development and operations of the advanced industries zone in New Clark City.

Unlike conventional economic zones that accommodate various export-oriented businesses, Puno said the proposed development would focus on industries connected to artificial intelligence and other advanced technologies.

“We won’t look for a denim jeans factory. That zone will not look for a shoe factory. It will look for higher-level businesses, which will require higher-level employment from our country,” he said.

The measure proposes a minimum investment of P15 billion, excluding real property costs, for qualified businesses seeking to establish operations in the zone.

Puno said the legislation would establish the authority’s powers, investment requirements, incentives and operating conditions, providing businesses with a more defined policy environment.

He explained that economic zones require their own enabling laws because their operating requirements and circumstances differ.

“That’s why we need the law, because it really defines, prescribes, guarantees what the zone will look like,” he said.

The proposed development also ties into the Philippines’ participation in Pax Silica, a declaration involving 26 countries that Puno described as a framework for cooperation in establishing an artificial intelligence ecosystem based on free-market principles.

Pax Silica initiative

He clarified that Pax Silica is non-binding and does not impose specific commitments on participating countries.

Rather, he said, the declaration provides common principles for cooperation, including developing an ecosystem that encourages private investment.

He said the proposed AIDA would follow these principles by coordinating investments and establishing a domestic framework for advanced industries.

Beyond attracting investments, Puno highlighted the potential employment opportunities that could emerge from the proposed zone.

He cited estimates ranging from 150,000 to 500,000 jobs within the development, although he did not specify a definitive timeline for generating these positions.

Puno also pointed to the potential employment generated outside the zone through businesses and industries that would support its operations.

Citing the experience of Bataan Rep. Albert Garcia in developing the Freeport Area of Bataan, he said employment outside an economic zone could increase sixfold compared with the jobs generated within it.

If applied to the proposed Clark development, Puno said the resulting employment opportunities could reach seven figures.

The anticipated demand for workers, however, would require preparations in education and technical training.

Puno said the Technical Education and Skills Development Authority, the Department of Education, and the Department of Information and Communications Technology were already looking into programs to prepare Filipinos for jobs related to artificial intelligence.

He particularly emphasized the need to retrain workers in the BPO industry, which could face changes as artificial intelligence becomes increasingly capable of handling routine tasks.

Rather than simply answering individual customer inquiries, he said, workers would need to develop skills in administering and supervising the computer systems that process those interactions.

Workers need to level up

“If right now, the BPO does processing where they answer the individual questions of many people, the job then will be somebody that will be administering the computer that replies to the inquiries of many people,” he said.

Puno cited navigation applications such as Waze as an example of how artificial intelligence and data management require increasingly complex systems.

With millions of vehicles generating information about their movements, he said, computers must continuously process and adjust data to provide updated navigation information.

He said Filipino workers would need to be trained to manage these systems as demand for artificial intelligence applications grows.

“Whole new world. But that’s where we are already,” he said.

The proposed development would also require substantial infrastructure, particularly electricity, water and data facilities.

Puno said the Bases Conversion and Development Authority had already mapped out the 1,350-hectare area, while plans for additional power generation and transmission facilities and a water system were being undertaken.

He said data centers would form part of the proposed development, particularly facilities that would house government information.

Among the facilities he mentioned were those intended for eGov.ph and the Philippine Computer Bank, explaining that government data should be stored within the country for security purposes.

However, he clarified that they would not establish large cloud-based data centers within the Clark zone because of their substantial electricity and water requirements.

He discussed the possibility of developing such facilities elsewhere, including Bataan, where existing infrastructure could potentially be used.

Puno also raised the possibility of converting the Bataan Nuclear Power Plant into a cloud database facility, citing its existing structures and protective dome.

He explained that the facility’s original design included protective features intended to shield it from external attacks, which he said could help secure important data infrastructure.

On the possibility of reviving the nuclear power plant itself, Puno said he had participated in discussions about its operation but questioned its suitability because of the population growth in surrounding areas.

He noted that the safety parameters considered when the facility was originally built had changed as nearby communities developed.

He also mentioned modular nuclear power plants as a possible future energy option, describing them as a different technology from the older facility in Bataan.

Keeping talent in the country

For Puno, the proposed development is also an opportunity to create a domestic market for Filipino professionals whose expertise has found opportunities abroad.

He noted that many Filipinos working in computer-related fields have established careers overseas, including in Canada and the United States.

The proposed advanced industries zone could help create opportunities for graduates of computer-related courses to pursue similar careers without leaving the country.

Maximizing competitive advantage

He also emphasized the importance of the English-speaking population and the pool of computer-literate workers in attracting international businesses.

“All of those are suddenly going to have a future in our country, not abroad,” he said, referring to students pursuing computer-related courses.

Puno said the proposed authority could begin operations in 2027 if the measure is passed within the year, with initial on-the-ground development potentially beginning around 2028.

The projections, however, still depend on the passage of the legislation, the development of supporting infrastructure, and the entry of qualified investors.

For the lawmaker, the urgency comes from the pace at which technology is changing industries and everyday life.

Reflecting on how technologies once considered far-fetched have become commonplace, he pointed to driverless vehicles and artificial intelligence applications as examples of how quickly the future can arrive.

“All of these things that are coming up require a new ecosystem. It requires new power arrangements. It requires new power capabilities, everything,” Puno said.

“The Philippines is now in a position, I think, to lead this.”