Cebu City is preparing its workforce for an economy increasingly shaped by artificial intelligence (AI), but city officials are making it clear that this push should not be mistaken for an endorsement of the proposed Pax Silica initiative in New Clark City, Capas, Tarlac.
The clarification from Cebu City Mayor Nestor Archival came after reports and social media posts connected his earlier remarks about AI investments with possible city support for the US-led initiative. Archival explained in a Facebook post that his comments were focused on helping Cebuanos adapt to future employment opportunities through AI education, digital skills training and innovation. He stressed that Cebu City has made no official declaration supporting Pax Silica.
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Preparing Cebu for an AI-Driven Economy
Rather than committing to a particular investment framework, the city is concentrating on developing the skills needed as technology changes the workplace. Archival pointed to existing efforts with the Department of Science and Technology (DOST), AI training for returning overseas Filipino workers through Technical Education and Skills Development Authority-accredited institutions, and digital skills programs for city government employees.
The mayor also noted that artificial intelligence is already changing industries, particularly the information technology-business process management sector. With automation expected to alter the way companies operate and the types of skills they require, retraining workers has become increasingly important to keeping Cebuanos competitive.
Archival has previously expressed openness to AI-related investments should the national initiative expand beyond New Clark City. However, he said any major development that could affect Cebu City would need to pass through objective assessment, legal review, public consultation, environmental safeguards and transparency before the city could take a position.
That distinction has become increasingly relevant as questions surrounding Pax Silica extend beyond its potential economic benefits. Labor and environmental groups have raised concerns about how AI-related developments could affect employment, utilities and the environment.
Pax Silica is a US-led economic security framework intended to strengthen global supply chains for artificial intelligence and semiconductors. The Philippines is among 24 countries that signed the agreement.
The proposed industrial hub in New Clark City covers about 1,620 hectares and is expected to support AI processing, semiconductor and high-tech component manufacturing, and critical mineral processing. The national government estimates that the project could attract between $40 billion and $70 billion in investments and generate up to 190,000 jobs.
Growth Must Match Cebu’s Capacity
For some Cebu officials, however, the discussion cannot be separated from the city’s existing infrastructure and environmental challenges.
City councilor Joel Garganera, chairman of the City Council’s Committee on Environment and Energy, questioned the wisdom of considering participation in Pax Silica while Cebu City continues to contend with recurring flooding, solid waste management problems, watershed degradation, and limited water and power supplies.
“While investments in AI and advanced manufacturing can create opportunities, I believe Cebu City should not pursue participation in the Pax Silica initiative unless we first address our existing environmental challenges,” Garganera said.
He also sought an update from the city executive regarding the proposed citywide moratorium on upland development, which he first raised on Dec. 16, 2025. Garganera said 232 days had passed without an update from the executive department and cautioned that large technology investments could place additional demands on resources if concerns surrounding water, electricity, flooding and waste management remain unresolved.
Employment is another major point of concern. The BPO Industry Employees Network-Cebu warned about the possible effects of AI adoption on workers, particularly if businesses turn to automation to reduce their need for employees in the information technology-business process management sector.
The Alliance of Concerned Teachers Cebu has also opposed efforts to position Cebu as part of the Pax Silica initiative. The group called for workers, academics, scientists and civil society organizations to have a role in discussions surrounding AI development.
Environmental groups, meanwhile, have questioned the proposed industrial hub's potential consumption of electricity and water, as well as possible noise pollution and impacts on wildlife. Concerns have also been raised about the possible displacement of about 20,000 Aetas and farmers in the project area.
For Cebu, the debate highlights a larger question about how cities should approach emerging technologies: pursuing the opportunities they create while making sure infrastructure, workers and natural resources can keep pace. The issue also underscores the importance of ensuring that economic modernization does not come at the expense of the resources and communities that sustain the city.
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