DTI Launches CAIR with Aim to Turn AI Research into Revenue Source

MANDALUYONG CITY — The Department of Trade and Industry (DTI) inaugurated the Center of AI Research (CAIR) on Wednesday, with Secretary Alfredo Pascual expressing his ambition for the center to generate significant revenue. This new AI-focused research and development hub is poised to contribute financially to the government while advancing technological innovation.

According to Philippines News Agency, who spoke at the event in Mandaluyong City, CAIR is set up with an initial investment of PHP70 million for the next two years and is currently operating from the DTI’s Makati City office. Plans are in place to relocate the center to the upcoming National Innovation Gateway at the University of the Philippines Diliman Campus in Quezon City. “Eventually, we foresee the Center for AI Research to be self-sustaining because it will do projects in partnership with the industry. At some point, it will be revenue-generating, and hopefully, the revenues can cover future expenses so we can minimize the subsidy that we require from the government,” Pascual stated.

The DTI chief outlined that CAIR is set to begin entering into research contracts with private companies and other stakeholders in AI, aiming to start generating revenue within this year. “For the remaining part of the year, we intend to do two projects for the government, [and] another two for the industry or for companies,” he added, indicating a clear strategy to kickstart financial contributions from the center’s operations.

Pascual emphasized that operationalizing CAIR would not only transform local AI research capabilities but also position the Philippines as a leader in AI research and innovation in the Asia-Pacific region. He cited data from the International Data Corporation, which forecasts that the largest organizations in Asia will allocate over half of their IT budgets to AI adoption by 2025.

“CAIR’s core mission is to elevate the Philippines into a premier destination for AI-driven innovation and investments across various industries, especially manufacturing,” said the top trade official, highlighting the center’s broad ambitions and its potential impact on the regional economic landscape.