MANILA, Philippines — Lawmakers have filed a measure seeking to establish clear regulatory standards for transactions executed by artificial intelligence (AI) agents while ensuring strict accountability for the individuals and entities deploying them.
Camarines Sur 5th District Representative Migz Villafuerte and Camarines Sur 2nd District Representative Luigi Villafuerte introduced House Bill (HB) No. 11014, also known as the proposed “AI Agent Transactions and Accountability Act.” The legislation acknowledges that authorized AI agents can autonomously negotiate, execute contracts, manage electronic documents, interact with APIs, and utilize smart contracts.
Emphasizing the necessity of adapting legal frameworks to rapid technological changes, Rep. Migz, who heads the House Committee on Information and Communications Technology, stated, “As AI agents become more capable of acting on behalf of people and businesses, our laws must keep pace. We need clear rules that establish accountability without unnecessarily holding back innovation.”
Under the proposed bill, AI agents will not possess legal personality or independent ownership rights. Instead, any actions executed by an AI agent within the authorized scope granted by its principal will be legally attributed to that principal.
To enhance trust, the measure tasks the Department of Information and Communications Technology (DICT) with creating a voluntary registration system and a Digital Authority Credential framework. This system enables third parties to verify a principal’s identity and an agent’s authority limit without exposing confidential authentication credentials.
Furthermore, mandatory registration will apply exclusively to narrowly tailored, high-risk, or systemically crucial autonomous transactions where existing oversight is insufficient.
The proposed legislation also safeguards lawful digital asset ownership, peer-to-peer transactions, open-source technologies, and self-custody by exempting private keys, seed phrases, and passwords from mandatory disclosure requirements.
Reiterating the legislative philosophy behind the measure, Rep. Migz added, “As chairman of the ICT Committee, I believe our approach should be risk-based and technology-neutral. We should address actual risks to consumers, businesses, and the public while giving innovators room to develop future digital technologies.”
The bill outlines distinct liability parameters for AI misuse. While principals remain generally accountable for their agents’ actions, exemptions apply in cases of credential compromise, unauthorized access, fraud, malicious third-party interference, and specific failures outside their control.
Intentional or willful violations involving fraud or statutory circumvention could result in fines ranging from ₱200,000 to ₱2 million, imprisonment from six months to six years, or both.
Additionally, the framework protects good-faith third parties relying on valid Digital Authority Credentials and mandates proportionate transaction logs for legally consequential autonomous activities.
Highlighting the broader vision of the measure, Representative Luigi Villafuerte, serving as deputy majority leader, remarked, “We need legislation that gives Filipinos and Philippine businesses the confidence to embrace new technologies while making sure that innovation is matched by responsibility and clear rules.”
The Villafuerte brothers previously authored HB No. 2827, known as the “Artificial Intelligence Development and Regulation Act,” which aligns with the National AI Strategy to form overarching regulatory and oversight bodies.
As AI continues to integrate into daily workflows, education, and domestic spaces, the lawmakers stress that the 20th Congress must implement robust safeguards to mitigate risks like false information spread and sensitive data exposure.