Executive Order No. 131: Philippine AI Governance Framework and National AI Council Explained
Executive Order No. 131, signed on November 12, 2026, adopts the AI Governance Framework for the Philippines as the national strategic guide on artificial intelligence (AI).
It also creates the National Artificial Intelligence Council (NAIC), chaired by the Executive Secretary, to coordinate and monitor how the Framework is carried out. The Order directs government agencies. It sets no new license, registration or penalty for businesses, and it says existing sector regulators keep their mandates.
Read the full text: Executive Order No. 131, Series of 2026, November 12, 2026 (Office of the President)
What is Executive Order No. 131?
Its title is "Adopting the Artificial Intelligence Governance Framework and Creating the National Artificial Intelligence Council." The President signed it in Manila on November 12, 2026. The Order cites the President's power of control over executive departments, bureaus and offices under Section 17, Article VII of the Constitution.
The Order recites two earlier steps. The National Artificial Intelligence Strategy for the Philippines (NAIS-PH) was approved in May 2025. The AI Governance Framework was then approved by the National Innovation Council as the national policy framework for responsible AI development, deployment and use. For the law on government digital services, see our guide on the E-Governance Act of 2025.
What does the AI Governance Framework contain?
Section 1 adopts the Framework as the national strategic guide for policy formulation, regulatory coordination, institutional development, capacity-building and other governance measures. The Order describes four connected elements:
Ethics and principles. AI development, deployment and use are to be guided by transparency and explainability, security and safety, accountability and integrity, human centricity, fairness and equity, and sustainable development.
Standards and assurance. Technical standards, testing and evaluation, conformity assessment, interoperability and other assurance mechanisms are to support responsible, safe, secure and trustworthy AI.
Risk-based policy toolkit. Governance measures must be proportionate to the nature, context and level of risk. They may include general and sector-specific guidelines, AI impact assessments, regulatory sandboxes, a review of existing laws and regulations, and coordinated complaint and grievance mechanisms.
Enabling resources. Government is to strengthen institutions, data and research and development, capabilities, infrastructure and demand generation.
Who sits on the National AI Council?
The NAIC is an inter-agency body that reports directly to the President (Section 2):
Chairperson: the Executive Secretary.
Vice Chairperson: the Secretary of Economy, Planning, and Development (DEPDev).
Members: the Secretaries of Information and Communications Technology, Science and Technology, Trade and Industry, Finance, Education, Labor and Employment, and Budget and Management; the Chairperson of the Commission on Higher Education; and the Director General of the Technical Education and Skills Development Authority.
Private sector: one representative appointed by the President from a list of nominees submitted by reputable business groups or associations, for a term of three years with one reappointment.
DEPDev serves as the Secretariat. The Council may invite other government agencies, local governments, government-owned or -controlled corporations, state universities and colleges, the private sector, academe and civil society to its meetings as resource persons.
What will the Council do?
Under Section 3, and subject to existing laws, the Council will:
keep government AI programs consistent with the Framework, address gaps and remove duplication;
oversee the action plans of its technical working groups;
strengthen international cooperation and private sector collaboration;
help resolve policy, regulatory and other bottlenecks, and give policy direction to agencies within their mandates;
recommend policy, regulatory, fiscal, institutional and legislative measures to the President, to speed up AI adoption and safeguard the rights and welfare of workers and learners affected by AI-driven transitions; and
issue guidelines to implement the Order.
Section 4 directs the Council to form five technical working groups: Institutions, Data and Research and Development, Capabilities, Infrastructure, and Demand Generation. The last one covers public-private partnerships and financing for AI adoption, including for micro, small and medium enterprises and startups.
The Department of Information and Communications Technology will run a digital monitoring and reporting platform, and agencies will update it every quarter. The Council reports to the President within 30 days from the end of each quarter (Section 5). It reviews the Framework at least once every two years (Section 6).
Does EO 131 impose new rules on businesses?
Not directly. Three points in the text matter:
It is addressed to government. National government agencies, including government-owned or -controlled corporations, are directed to support the Council. Local governments, the private sector, academe and civil society are encouraged to do so (Section 7).
It has no penal clause. The Order sets no license, registration, fee or penalty for companies that build or use AI.
Regulators stay in charge. Existing sector regulators continue to exercise their mandates under applicable laws (Section 1).
Rules may still follow. The Council may issue implementing guidelines and recommend legislative measures to the President, and the Framework's toolkit names sector-specific guidelines and AI impact assessments. Laws already in force also continue to apply to how a business uses AI.
The Order itself refers to "applicable data privacy laws" (Section 4). The main one is the Data Privacy Act of 2012 (Republic Act No. 10173). See our guides on employee monitoring and privacy rules and on the Supreme Court's framework for AI in the judiciary.
When does EO 131 take effect?
Immediately upon its publication in the Official Gazette or in a newspaper of general circulation (Section 12). Within 30 days from effectivity, DEPDev must form an interim Secretariat (Section 8). Initial funding comes from the current and available appropriations of the Council's members and other sources that the Department of Budget and Management may identify (Section 9).
What should businesses do now?
These are practical steps, not requirements of the Order:
List where your business uses or plans to use AI, such as in customer service, hiring, credit decisions or marketing.
Check those uses against the laws that already apply to you, starting with data privacy and the rules of your own regulator.
Assign someone to watch for the Council's guidelines and for new issuances from your regulator.
Keep a record of how AI-assisted decisions are made and reviewed. Transparency and accountability are among the Framework's stated principles.
If you want a say, work through your business group. Business groups nominate the private sector member, and the Council is to ensure appropriate private sector representation in its working groups, as may be necessary (Sections 2 and 3).
For board-level issues, see our note on corporate governance trends for 2026.
Frequently asked questions
Is EO 131 a law that regulates AI?
It is an executive order. It adopts a strategic guide and organizes the executive branch around it. It is not a statute passed by Congress, and it carries no penalties. One of the Council's functions is to recommend legislative measures to the President.
Does the private sector have a seat on the Council?
Yes,
One. The President appoints the representative from nominees of reputable business groups or associations, for three years with one reappointment. The private sector may also be represented in the technical working groups or invited as resource persons.
Who monitors implementation?
The Council, through DEPDev, leads monitoring and reporting. The Department of Information and Communications Technology maintains the monitoring platform, and agencies update it every quarter.
How often will the Framework be reviewed?
At least once every two years, or earlier when significant technological, regulatory or market developments call for it.
Sources
Executive Order No. 131, Series of 2026, November 12, 2026 (Office of the President)
1987 Constitution, Article VII, Section 17
Republic Act No. 10173 (Data Privacy Act of 2012)
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This article is general information as of its publication date, not legal advice, and does not create a lawyer-client relationship. For advice on your situation, consult a lawyer.
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