Artificial intelligence (AI) has particularly emerged as one of the most important technologies in recent years. The International Trade Administration reports that the AI sector in the Philippines is anticipated to expand from the projected value of $772.1 million in 2024 to about $3.5 billion by 2030, which corresponds to have an annual growth of nearly 29 percent (ITA 2024). According to the Department of Trade and Industry, AI could potentially contribute 12 percent of the country’s gross domestic product by 2030 (Manila Standard 2023). However, this expansion necessitates robust digital infrastructure and regulatory frameworks to ensure sustainable development (ITA 2024).
The study intends to analyze the challenges and barriers to AI adoption by LGUs. This could be beneficial in identifying specific local governments that need increased attention in terms of capacity building efforts.
For LGUs that are already utilizing digital technology and have the foundations for the adoption and use of AI, this study would be able to provide an assessment of the key features needed by such LGU to adopt and use AI to improve their services. It also increases awareness on the possible use cases that may be adopted by LGUs in order for them to benefit from the available AI technology.
Meanwhile, for LGUs classified as located in Geographically isolated and disadvantaged areas (GIDA) sites, this study would be able to work towards the push for improved digital access and increase adoption and use of digital technology, possibly even leapfrogging to an LGU utilizing AI.