Responsible AI use will boost SMEs, economic growth—SEC
By Acel Fernando, CLTV36 News
CITY OF SAN FDO, PAMPANGA — Despite rapid technological advancements worldwide, the Philippines continues to lag in utilizing artificial intelligence (AI), with only 14.9% of companies reportedly adapting to the technology.
According to a study by the Philippine Institute for Development Studies, most who have adapted early are large corporations concentrated in urban centers, especially in the ICT and BPO sectors.
This gap—and the opportunities that come with bridging it—took center stage during the 82nd General Membership Meeting of the Pampanga Chamber of Commerce and Industry (PamCham) on Monday, November 17.
Securities and Exchange Commission (SEC) Chairman Atty. Francis Edralin Lim, who served as the event’s guest speaker, underscored AI’s potential to enhance efficiency, improve decision-making, and deepen customer understanding, especially for small and medium-sized enterprises (SMEs).
“AI can help them in so many ways—for example, how to understand their customers more deeply. [And] how to leverage AI in terms of simplifying their procedures because AI can be very fast,” Lim said.
But alongside the promise of innovation is the call for caution. Lim stressed that businesses must prioritize responsible AI—technology that relies on credible, high-integrity data.
“What we have to really develop is responsible AI—AI that can base its decisions on data. And the data should be credible… Garbage in, garbage out. If you’re fed false information, you’ll not come up with a correct decision,” he explained.
Government Support to Ease Regulatory Burdens
Some MSMEs worry that AI could introduce added regulatory burdens. But Lim highlighted ongoing efforts to simplify compliance processes, made possible in part by the Magna Carta for MSMEs.
“The government has been liberalizing AI para hindi sila mahirapan sa… regulatory challenge,” he said, noting that the SEC offers discounted fees and lower rates for securing documents. “And if they decide to go public, we give them discounts in terms of registration fees.”
Lim emphasized that regulation should not be viewed as a hindrance. Rather, it should serve as a bridge for local businesses to scale and compete more effectively.
AI as an Ally—Not a Replacement
Addressing concerns about job displacement, Lim clarified that AI is designed to empower, not replace, Filipino workers and entrepreneurs.
“AI is not here to replace Filipino entrepreneurs and employees. It is here to empower you,” he said.
He cited tools such as regulatory technology (RegTech) and supervisory technology (SupTech), which streamline filings, reduce errors, monitor markets in real time, and help prevent fraud—particularly valuable in an environment where scams evolve daily.
“AI gives us speed, foresight, and stronger protection… AI is your ally. It is also your regulator’s ally,” Lim added.
AI and Economic Development
For businesses struggling with reporting and documentation, Lim assured that AI-powered tools are designed to make regulatory compliance more manageable.
Ultimately, he believes responsible AI can significantly propel the country’s economic development.
“Yes—as long as we have responsible AI. Otherwise, you might be misled,” he said. “Responsible AI is essential to really leverage AI in the economic development of the country.”
As the global digital shift continues, the SEC chief urged Pampanga’s business community to embrace AI not as a threat, but as a powerful instrument for growth—provided it is used ethically, accurately, and responsibly.
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