I visualise a time when we will be to robots what dogs are to humans, and I’m rooting for the machines. — American mathematician Claude Elwood Shannon
Despite accelerated efforts by government for digital transformation, one wonders if our local government units (LGUs) are ready—or even prepared—to adopt the use of artificial intelligence (AI) in its operations.
The critical point here is that most of our LGUs across the country—from the barangays to city and provincial governments—they remain underprepared or even resistant (for unspecified reasons) to AI integration.
Still, in a recent policy study by the Philippine Institute for Development Studies (PIDS), it is noted that our LGUs have yet to accept the fact that progress nowadays means digitalization. But sadly, most of them remain low to moderately prepared for AI.
Based on the AI Readiness Index, LGUs scored only 30 to 35 out of 100, reflecting serious gaps in digital infrastructure, technical skills, institutional capacity and even funding (maybe because billions of public funds have been lost due to corruption).
This the structural dilemma faced by our LGUs and it is compounded by the problematic situation where local officials are often compelled to prioritize immediate public services—such as health, social welfare, and basic infrastructure—that deliver visible political returns, over long-term investments like AI systems that require time, skills and sustained funding.
Added to this issue, there is a significant shortage of ICT and AI-related skills, weak (if not defective) last-mile internet connectivity and limited budgets for digital initiatives. Income level also plays an important role and gives basis why first-class LGUs score higher on AI readiness.
However, the PIDS study has noted that strong leadership and clear policy focus also allowed some lower-income LGUs to outperform their wealthier counterparts. It likewise warned of growing regional disparities in AI readiness.
The National Capital Region (NCR) leads in this even as areas like the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM), Eastern Visayas, the Cordillera Administrative Region (CAR) and MIMAROPA (MIndoro, Marinduque, Romblon and Palawan) lag desperately behind.
The truth is that without targeted interventions, AI adoption could deepen existing inequalities, leaving already marginalized regions further excluded from the gains that would be achieved in digital governance.
In view of these concerns, the situation now requires closing the readiness gap and this calls for coordinated national and local action. Regulatory barriers to digital infrastructure must be removed by eliminating legislative franchise requirements for connectivity providers, data centers and cloud services.
Aside from this, AI and data literacy must also be integrated into education—beginning at the K–12 level the coming year and in line with the Philippine Digital Workforce Competitiveness Act (RA 11927). Over and above, a unified National AI Strategy, supported by an executive order, must be established with clear institutional leadership and defined agency roles.
And looking at the financial aspect of such a move, ICT budget allocations for LGUs must be mandated by at least 2 percent in 2026 and 3 percent in 2028. This would ensure sustained funding for digital and AI initiatives.
Perhaps, a National LGU AI Readiness Fund could also be created by prioritizing lower-income municipalities through equity-based grants. Promoting inter-LGU collaboration could also be done by allowing clusters of provinces and municipalities to share AI infrastructure and services.
It is worthy to note that at the national level, groundwork is already underway and initiatives, such as the National AI Strategy Roadmap, the proposed Center for AI Research (CAIR) and the Philippine Development Plan 2023–2028, signal strong policy support for AI-driven growth.
But despite this, policy ambition has yet to translate into general local-level adoption, especially among LGUs and micro, small and medium enterprises (MSMEs) still in their early stages of digital transformation.
Amidst the complicacy to digitalize, though, we realize that we are at a defining moment. Artificial intelligence can boost our productivity, reduce costs and improve public service delivery—but only if LGUs are empowered, equipped and included.
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Thank you and mabuhay!
