JERUSALEM, Israel — The Philippines should not hesitate to enter the artificial intelligence (AI) era, but it must ensure that its pursuit of technology comes with strong regulation, environmental safeguards and a clear national strategy, according to former Israeli Ambassador to the Philippines Ilan Fluss.
Fluss, now Policy Coordinator for Emerging and Disruptive Technologies under Israel’s Strategic Department of the Ministry of Foreign Affairs, expressed support for the Philippines’ participation in Pax Silica, a United States-led initiative aimed at building secure supply chains covering critical minerals, energy, semiconductors, advanced manufacturing and AI infrastructure.
His position comes as the proposed 1,618-hectare AI and advanced manufacturing hub in New Clark City, Tarlac faces growing questions over its potential impact on water resources, electricity demand, land, communities, environmental sustainability and Philippine sovereignty. The Philippine government has maintained that safeguards will be imposed to protect national interests, the environment and affected communities.
“If you don’t want to be left behind, be in front. Be a leader,” Fluss said in an interview with the Philippine media delegation – which included Panay News – visiting Israel.
‘You cannot stay behind’
For Fluss, the debate should not simply be whether the Philippines should embrace AI, but how it can do so without sacrificing public interest.
“In modern times, there is nothing wrong with progress. You have two options — you progress, you move forward with technology, you do it in a smart way and in a grand way, or you stay behind,” he said.
He acknowledged, however, that technological development comes with significant challenges, particularly the enormous amounts of electricity and other resources required to operate AI infrastructure.
Israel itself, he said, is confronting a similar problem.
“In Israel, we also have challenges with energy,” Fluss said, noting that projected demand from various projects could require the country to generate roughly three times its current energy supply in the coming years.
That warning is particularly relevant to the Philippines, where electricity costs remain a major concern and where the country’s power system is already under pressure to meet growing demand.
The question, therefore, is whether the Philippines can attract AI investments without allowing the infrastructure required by the industry to place additional pressure on electricity, water and other natural resources.
AI hub brings opportunity — but questions remain
Pax Silica was launched as a strategic initiative to strengthen the technology supply chain among partner countries, from critical minerals and energy inputs to semiconductor manufacturing, AI infrastructure and logistics. Israel formally joined the initiative in December 2025.
The Philippines later joined the initiative, with New Clark City identified as the site of a proposed large-scale industrial hub focused on AI innovation, advanced manufacturing and technology investments.
But the proposal has also generated strong opposition and demands for greater transparency.
Environmental and community groups have raised concerns over the project’s potential consumption of water and electricity, environmental effects and possible displacement of farmers and Indigenous communities.
The debate has also expanded into questions of sovereignty and whether the Philippines could become primarily a host for foreign technology infrastructure rather than develop its own domestic capabilities.
The government, however, has rejected claims that the project would compromise Philippine sovereignty and has assured that existing laws and environmental safeguards will apply.
Fluss: Regulation must come with innovation
Fluss said these concerns should not be dismissed.
Instead, he argued that regulation should be incorporated while technology is being developed, rather than imposed only after an industry has already been established.
“We need to manage the process,” he said. “When you bring innovation, you bring the regulator in order to make sure that it is done in a responsible way.”
He said Israel follows a model in which government provides national coordination while individual ministries remain responsible for implementing AI within their respective sectors.
Israel established a national AI directorate to coordinate policies and address challenges across government, industry and society, according to Fluss.
The Israeli approach, he said, is intended to prevent AI development from becoming fragmented across different government agencies.
‘We cannot ignore the environmental question’
Fluss also acknowledged that AI development presents environmental challenges.
“Yes, we need to be responsible for the environment. We are certainly aware of it,” he said.
This is one of the most important issues facing the proposed Philippine hub.
AI data centers and advanced technology facilities require substantial electricity and, depending on their cooling systems, significant amounts of water. Environmental researchers have increasingly warned that AI infrastructure can create difficult trade-offs between technological development, resource consumption and environmental sustainability.
For the Philippines, the question is therefore not simply whether the country wants to become an AI hub—but whether it has sufficient energy, water, infrastructure and regulatory capacity to host one sustainably.
From AI to quantum computing
Fluss said Israel is also preparing for technologies beyond today’s AI systems, including quantum computing.
The country’s AI strategy, he said, includes efforts to encourage companies to develop quantum computing technologies and build an ecosystem around emerging technologies.
For him, this illustrates why developing countries cannot afford to wait until technologies become fully mature before preparing their institutions and workforce.
“This is the future. We need to be there,” he said.
But he stressed that being part of the technological race does not mean every country must independently develop every component.
Israel sees international partnerships as the way forward
Fluss argued that international cooperation could allow countries to share the cost and benefits of emerging technologies.
Israel, he said, is pursuing partnerships with other countries in AI and other emerging technologies rather than attempting to develop everything on its own.
“You can have data centers which are shared between countries,” he said. “You can develop solutions to challenges and develop them together with your country. You share the effort and then you share the results.”
He said Israel has already been working on agreements and partnerships covering AI with several countries.
For the Philippines, such cooperation could potentially provide access to technology, investment and expertise — but the terms of those partnerships remain critical.
The bigger question for the Philippines
Pax Silica’s supporters argue that the initiative could position the Philippines within a rapidly expanding global technology supply chain and attract high-value manufacturing, semiconductor and AI investments.
But the controversy surrounding the proposed New Clark City hub demonstrates that investment alone cannot be the measure of success.
The Philippines must still determine how much electricity and water the project will consume, who will benefit from the jobs and investments, how local communities will be protected, what environmental safeguards will be enforced, and how much value will remain within the Philippine economy.
Those questions have become even more significant because Pax Silica is not simply an AI project. The initiative covers critical minerals, semiconductor manufacturing, advanced technology, energy systems, logistics and digital infrastructure—making it part of a broader geopolitical contest over who controls the supply chains powering the next technological era.
Fluss nevertheless believes the Philippines has an opportunity it should not squander.
“If you don’t go into the AI era, you’ll be left behind,” he said. “So do you want to stay behind, or do you want to move?”
But for the Philippines, moving forward may require more than simply saying yes to Pax Silica.
The harder question is whether the country can become an AI leader while ensuring that the electricity, water, land, jobs, technology and economic gains generated by that transformation ultimately work for Filipinos./PN