Phl braces for DeepSeek AI

The launch of a less costly but with wider reach Chinese-made artificial intelligence (AI) app DeepSeek sent stock prices of giant and well-established American tech companies tumbling in last Monday’s trading in the United States. The China-based DeepSeek reportedly became the most downloaded free app in the US just a week after it was launched. The British Broadcasting Corp. (BBC) reported Nvidia – the company behind the advanced chips that dominate many AI investments – was the hardest hit on Monday’s stock trading in the US.

The BBC noted the market hit of DeepSeek came as investors shifted to the Chinese app AI, made at a fraction of the cost of those of American tech giants like Nvidia and Apple, among others. The breakthrough of DeepSeek is seen to benefit consumers and tech companies as well if the cost of AI models becomes cheaper. It could also be a boon for other tech giants, which have faced scrutiny for their high spending on AI, BBC analysts warned.

This major development in AI technology did not escape the attention of our country’s policy-makers.

Department of Information and Communications Technology (DICT) Secretary Ivan Uy welcomed the breakthrough AI app developed by China. The DICT secretary, however, described the DeepSeek breakthrough in the US market as “unsettling” and “disruptive,” since AI comes from free and open sourcing of data.

“AI runs on data. It feeds on data,” Uy pointed out. “Can we adopt this technology and make us relevant? What if the technology takes over in normal functions that we used to do?” the DICT chief rhetorically asked.

The DICT secretary echoed this concern during our Kapihan sa Manila Bay news forum last Wednesday that coincided with the Chinese New Year celebration here in our country. Later that day, Uy listened to quite similar sentiments expressed by Sen. Imee Marcos in the latter’s speech before the Federation of Filipino-Chinese Chambers of Commerce and Industry Inc. (FFCCCII) last Wednesday night.

Digressing from her prepared speech, Sen. Marcos also welcomed the DeepSeek “innovation” done by China at a cost of $6 million that broke through and shook the US market on AI technology in last Monday’s trading. Sen. Marcos believes DeepSeek could be a source of opportunity for the Philippines to explore possibilities in this “transformation” of the AI technology development with China.

Thus, Sen. Marcos underscored the need for both the Philippines and China to hurdle the prevailing “tumultuous” relations between the two countries. Although she did not go into detail, she obviously referred to the continuing dispute on the overlapping territorial maritime claims in the South China Sea and the West Philippine Sea. She called for greater efforts to restore the strong bilateral partnership for common use of and benefit from China’s DeepSeek. The eldest sister of President Ferdinand “Bongbong” Marcos Jr. (PBBM) is up for re-election for a second term at the Senate.

Secretary Uy – a Chinoy himself – attended also the FFCCCII reception for the Chinese New Year where Sen. Marcos represented her mother, former First Lady Imelda Marcos, who was recognized for her key role in the formal establishment of Philippines-China diplomatic relations. The reception hosted by FFCCCII served as the kick-off for the observance of the 50th anniversary of Philippines-China diplomatic ties in July this year.

Earlier that day, the DICT secretary joined anti-scam advocacy group leader Jocel de Guzman of ScamWatch Pilipinas in the discussion on the impact of generative AI being used in “deep fakes” and other cyber fraud crimes. Like the rest of the world, the DICT secretary noted the Philippines is not far behind in the technology advancements. In the same vein, the Philippines also suffers from the global security threats posed by cybercrime syndicates.

“AI is unchartered territory and still growing. How it will evolve with the large language of generative AIs, agent AI is the next iteration,” Uy explained.

“The AI challenge is very sexy. Each government agency wants to do AI,” he noted with a wry smile.

Uy likened the present AI developments during the period when computerization was the biggest advancement.

“Computerization was very sexy that government agencies went into computerization but over the years, our systems do not even talk with each other. Watak-watak, no sharing of information” Uy recalled.

“Opportunities are tremendous but we have to get our acts together… Instead of each government agency having its own kingdom,” Uy noted.

Thus, Uy disclosed, the DICT initiated the electronic-government app, or e-gov that put together these government agencies accessible online through the internet. According to Uy, there are currently 30 government agencies and a hundred more will soon also be connected and available on e-gov under the digitalization program of PBBM.

To institutionalize this platform in the entire government machinery, Uy looks forward to the passage into law of Senate Bill 2781, also known as the proposed “e-Governance Act” and its counterpart measure, House Bill 7327, or “An Act Institutionalizing the Transition of the Government to e-Governance in the Digital Age.”

As of his last check on the status of the “e-Gov” bill, it has been approved on third and final reading at the Senate. With its House version approved last year, the Senate “e-Gov” bill will go to the bicameral conference committee to reconcile differing provisions and consolidate into one before it goes back to Congress for ratification. Once both chambers ratify this, it will be submitted as an enrolled bill to Malacañang for vetting. After which it will wait for PBBM to sign it, or it lapses into law or is vetoed all together.

On a light note, Uy shared a joke among the tech industry on a make believe conversation between X platform owner Elon Musk and his wife. “Musk’s wife told her husband they should not chat in Facebook run by Meta platform because she fears Mark Zuckerberg who owns it might be listening to them. Then Musk laughed. Then Zuckerberg laughed. Then Alexa laughed. And Siri laughed,” Uy chortled.

Don’t laugh as the Philippines too braces for the DeepSeek AI.