ARTIFICIAL intelligence (AI) has begun influencing business decisions, strategic planning and daily operations. As more Philippine companies adopt AI, an important question arises: Can businesses and their stakeholders trust the systems influencing these decisions?
AI offers significant opportunities, but trust cannot be assumed. It must be built through proper governance, transparency and accountability.
The rapid adoption of AI is particularly evident in the Philippines’ information technology and business process management industry. According to the Information Technology and Business Process Association of the Philippines, the sector is on track to generate $42 billion in export revenue and employ 1.97 million workers this year.
AI is already changing how business process outsourcing (BPO) companies operate, helping improve customer service, automate routine tasks and increase efficiency. Its use has also expanded into banking, entertainment, delivery services, and other industries for functions such as fraud detection and customer feedback analysis.
Employees across different sectors are also using AI to make everyday tasks easier and more efficient.
But, as its use expands, so do the risks. Without proper safeguards, AI can expose organizations to data privacy breaches, deepfakes, algorithmic bias, excessive dependence on automated decisions and other unintended consequences. Concerns over job displacement, reliability and accountability have also contributed to public uncertainty about the technology.
The challenge, therefore, is not to avoid AI, but to establish rules for using it responsibly.
One framework available to companies is ISO/IEC 42001:2023, an international standard developed by the International Organization for Standardization (ISO) and International Electrotechnical Commission (IEC) for organizations that develop, provide or use AI-based products and services.
The standard provides requirements for establishing, implementing, maintaining and continually improving an Artificial Intelligence Management System (AIMS). It is intended to help organizations manage AI risks while promoting responsible development, transparency and ethical governance.
Companies seeking ISO 42001 certification must establish an AIMS that complies with the standard and undergo an independent audit by an accredited certification body.
Global certification bodies operating in the Philippines include SGS Philippines, BSI Philippines, TÜV SÜD Philippines and LL-C (Certification) Philippines.
Independence
An important principle is the independence of the certification process. Under ISO/IEC 17021-1:2015, the organization auditing and certifying a company’s management system must remain impartial. Companies may therefore engage separate consultants to help develop and implement their AIMS before seeking independent certification.
Philippine companies have yet to widely publicize ISO 42001 certification, but interest is growing in industries such as BPO, health care, finance, telecommunications and e-commerce.
Companies elsewhere in Southeast Asia have already obtained the certification, including organizations in Thailand, Malaysia, Vietnam and Singapore. This development suggests that AI governance could become part of the competitive landscape for companies operating internationally.
Why does certification matter? AI can improve productivity, reduce costs and create new opportunities for innovation. But the greater the role AI plays in business operations and decision-making, the greater the potential consequences when systems fail or are improperly managed.
An AI system used in recruitment, for example, could unintentionally discriminate against certain applicants. Systems handling customer information could create privacy and cybersecurity risks. Employees could become overly dependent on AI-generated information without adequately checking its accuracy.
A structured governance system can help companies identify such risks before they cause serious damage.
While ISO 42001 certification is not legally required in the Philippines, companies that rely heavily on AI may find value in adopting its principles even if they do not immediately seek certification.
A strong AI management system can establish clear accountability on how AI is developed and used, require organizations to assess risks, improve transparency and provide safeguards for customers, employees and other stakeholders.
Certification can likewise provide independent assurance that an organization has established processes for managing AI responsibly. This can strengthen stakeholder confidence while reducing legal, operational and reputational risks.
However, certification itself should not be treated as proof that an AI system is completely safe, unbiased or error-free. Technology changes rapidly, and responsible AI governance requires continuous monitoring and improvement.
For Philippine companies seeking to compete in a digital global economy, adopting AI is only part of the challenge. Businesses must also demonstrate that the technology is being used responsibly.
Companies cannot simply pursue AI because it promises greater productivity and efficiency. They must understand how their systems make decisions, identify potential risks and establish accountability when problems arise.
In the digital economy, technological progress and responsible governance must develop together. AI may help companies move faster, but trust will ultimately determine whether that progress is sustainable.
Danica de Pedro is a certified public accountant and a senior internal auditor at First Gen Corp. who is currently pursuing a Doctor of Business Administration degree at De La Salle University.