Technology Adoption: A Policy-Centric Analysis of the Philippines' Preparedness to Embrace Conversational AI

Disruptive technologies always have their pros and cons. To harness the benefits while mitigating the drawbacks, it's crucial to establish policies and regulations to govern their adoption. Artificial Intelligence (AI), the driving force of Industry 4.0, aims to enkindle the economy and promote inclusive growth in the Philippines. Conversational AI, an emerging technology in the realm of AI, has the power to change the landscape of industries. The primary goal is to enable machines to communicate with humans using natural language, enhancing human-computer interaction. It can potentially reduce labor costs by up to 30% and improve services through its vast information storage, continuous operation, and high client capacity. However, the adoption has several barriers. These include the risk of job displacement, ethical concerns, and privacy violations during its nascent stages, potential exacerbation of fraudulent activities, and a deepening digital divide. Successful implementation demands advanced infrastructure, high-speed internet, robust research and development, a skilled workforce, and societal trust. This paper delves into the root causes of these barriers, explores existing government and private initiatives, and outlines action plans to overcome these challenges. It further offers recommendations and essential insights to inform policy-making and strategies that expedite conversational AI adoption while mitigating its adverse effects on the economy, industries, and society.