DOST-7 promotes AI, Industry 4.0 for MSMEs

CEBU CITY, Philippines — The Department of Science and Technology Central Visayas (DOST-7) is encouraging micro, small, and medium enterprises (MSMEs) to adopt Industry 4.0 technologies, including artificial intelligence (AI), as part of its long-term strategy to strengthen local businesses, generate jobs, and improve community livelihoods.

During the media launch of the Regional Science, Technology, and Innovation Week (RSTW) on Thursday, July 2, 2026, DOST-7 Regional Director Dr. Tristan L. Abando said the agency aims to accelerate the digital transformation of MSMEs through its upgraded Small Enterprise Technology Upgrading Program (SETUP) 4.0.

“Our micro, small, and medium enterprises are really providing economic opportunities for a lot of people and driving our economic growth. What we need to do right now is continue advocating technology upgrading and innovation. With the advent of artificial intelligence and other emerging technologies, many businesses still have difficulty adapting,” Abando said.

READ: MSMEs should tap AI to bolster business

He said DOST aims to build “a critical mass” of digitally transformed MSMEs by 2028 through the wider adoption of AI and Industry 4.0 technologies.

“By 2028, we want to achieve a critical mass of MSMEs that are undergoing digital transformation and utilizing artificial intelligence to improve their productivity and efficiency. That’s why we are prioritizing SETUP 4.0 projects related to Industry 4.0 technologies from 2026 to 2028,” he said.

Abando said the agency’s strategy goes beyond helping existing businesses become more productive.

Under its second horizon, DOST-7 aims to nurture innovative startups capable of developing digital solutions and technologies that can compete globally.

“We are working with startup organizations so that more startup ventures can thrive here in Cebu, Bohol, and across Central Visayas. We believe these innovative enterprises can provide solutions that address real problems while becoming globally competitive,” he said.

READ: Small businesses in Cebu to benefit Asean’s Digital Economy Framework

Provincial Science and Technology Office-Cebu Director Bryan B. Ybañez said these initiatives will be highlighted during the Smart MSMEs Conference, one of the major events of this year’s RSTW.

“The Smart MSMEs Conference will showcase our programs that support micro and small enterprises, providing opportunities for them to connect with DOST and avail themselves of its innovation support, along with other science and technology programs,” Ybañez said.

The initiative echoes a recent call from technology firm Accenture, which said AI can help MSMEs improve sales, marketing, supply chain management, and overall operational efficiency even with limited capital. Technology leaders also emphasized that wider AI adoption can make the technology more accessible and improve digital literacy among small businesses.

Abando emphasized that technology adoption should ultimately benefit communities by making local businesses more competitive and creating more economic opportunities.

“We have solutions and opportunities for all because we want to bring science, technology, and innovation closer to the people,” he said.

He added that DOST is also promoting the responsible use of AI through training and capacity-building while developing localized AI platforms that can better protect business data.

“AI is just a tool. We should not be heavily dependent on AI platforms. We still need human intervention,” Abando said.

The initiatives will be featured during the Regional Science, Technology, and Innovation Week from July 13 to 15, 2026, where DOST-7 will also hold conferences, startup activities, innovation exhibits, and technology showcases aimed at bringing science and technology closer to communities across Central Visayas.

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