Inside Philippines: How Sutherland is working to upskill Filipinos in AI

Industry-led curriculum and corporate partnership

President Ferdinand Marcos Jr. endorsed the AI Academy, characterizing it as a "vital step" towards empowering Filipinos to "benefit from – an economy increasingly shaped by AI." His endorsement signals strong political will, elevating the initiative to a national strategic priority. 

The project's international importance was underscored by its formal unveiling at Sutherland’s global headquarters in Rochester, New York.

Sutherland acts as a core technology and innovation partner, utilising its deep expertise and a portfolio of over 200 AI-related patents to develop a future talent pool. The collaboration serves the dual purpose of meeting Sutherland's operational need for high-skilled talent while simultaneously advancing the Philippines' broader economic ambitions. 

Dilip Vellodi, Chairman and CEO of Sutherland, stated that the partnership commits to fostering an environment for digital skills and innovation that supports industries and boosts the economy. He called it “a lasting ecosystem for digital skills and innovation.”

The AI Academy's pragmatic approach focuses on developing skills for specific, high-demand roles in the modern digital enterprise. These roles include AI specialists, prompt engineers who optimise generative AI models, and cybersecurity professionals. 

The inclusion of prompt engineering demonstrates a curriculum responsive to recent technological shifts, such as the widespread adoption of Large Language Models.

A coordinated national AI strategy

Department of Information and Communications Technology (DICT) Secretary Henry Rhoel Aguda has emphasised the urgency of this mission, citing estimates that AI proficiency will be a “necessity for 85% of jobs” within the next decade. 

The Academy will initially focus its training on critical, high-growth sectors of the Philippine economy, including fintech, healthcare, and emerging digital industries, ensuring that skills developed are directly transferable to the workplace. The program is structured as a multi-stakeholder collaboration, involving the national government, local government units (LGUs), and academic institutions. 

Camarines Sur and Tarlac provinces have been named as initial government partners, aligning with a national effort to decentralise digital economic opportunities beyond Metro Manila. Sutherland already has a significant operational presence in these provinces, facilitating logistical rollout and providing local industry expertise.

The AI Academy is central to the Philippines’ comprehensive national effort to use artificial intelligence for economic development and global competitiveness. The national effort is characterised by coordinated strategies from various government departments.

The role of key government agencies

The Department of Trade and Industry (DTI) launched its National AI Strategy Roadmap (NAISR 2.0) in July 2024. The updated roadmap aims to position the Philippines as a regional AI powerhouse and explicitly identifies workforce development as a key priority. The DTI anticipates that widespread AI adoption could add up to PHP 2.6 trillion (approximately $44.5 billion) annually to the country's Gross Domestic Product (GDP).

In parallel, the Department of Science and Technology (DOST) has advanced its own National AI Strategy, outlining a framework through 2028. The DOST's vision focuses on building robust support systems for a thriving AI sector, including plans for a 26-fold increase in the nation's high-performance computing (HPC) capacity by 2028.

The DICT serves as the lead government partner in the AI Academy and is the primary implementing arm for the nation's digital transformation agenda. The partnership with Sutherland marks a refined approach for the DICT, focusing on developing a customised, industry-led national curriculum for specialised AI skills.

The program's long-term viability depends on the Technical Education and Skills Development Authority (TESDA), an essential stakeholder. As the national authority for technical vocational education and training, TESDA is responsible for setting skill standards and issuing nationally recognised certifications. TESDA has already adapted to digital demands, offering a Generative AI course that provides foundational skills, along with other AI and data analysis courses. 

Surging workforce demand meets real-world hurdles

The demand for enhanced AI skills among Filipino workers is clear. A 2023 study by The Economist Impact and Google revealed that 42% of Filipino employees want to acquire new digital skills related to AI and Machine Learning, a rate higher than their Asia-Pacific counterparts (33%). 

More recently, Microsoft and LinkedIn's 2024 Work Trend Index found that 86% of Filipino knowledge workers use AI at work, surpassing global and regional averages. Seventy percent of Filipino leaders also indicate they would only hire someone with AI skills. 

The Jobstreet by SEEK's Decoding Global Talent Report 2024 indicated that 46% of Filipinos use Generative AI monthly, slightly exceeding the global average of 39%. Over 70% of Filipino talent are willing to reskill to remain relevant. These findings underscore the need for government initiatives in AI skill development.

Despite the workforce's strong interest, challenges persist. The 2023 Economist Impact and Google study identified poor internet access (cited by 41% of respondents) and lack of time (40%) as major hurdles for Filipinos wanting to enroll in online skill development courses.

A calculated economic pivot

The Sutherland-Philippines partnership represents a calculated pivot in national economic strategy. For decades, the country's growth depended on the Business Process Outsourcing (BPO) industry, primarily focused on voice services. 

The new AI Academy is designed to move the country up the value chain, shifting the focus from providing labour to creating intellectual property and specialised services. The government aims to secure the country's future in high-margin sectors like AI development, rather than relying solely on cost-effective customer support.

The "whole-of-nation" approach now faces a practical test. The initiative requires collaboration between the DTI (strategy), DOST (R&D), DICT (implementation), and TESDA (certification). Such inter-agency coordination has historically been a challenge in the Philippines. The academy's outcome will demonstrate the government's capacity to execute complex technology policies and turn roadmaps into results.

Sutherland's role extends beyond corporate social responsibility into actively shaping its future talent market. By co-designing the curriculum, Sutherland ensures a steady supply of professionals trained for its specific needs. 

The company's 'ecosystem engineering' builds a sustainable competitive advantage and integrates it into the national economic fabric, establishing it as a strategic partner, not just a foreign investor.

The goal is to create a hub of AI talent that attracts further investment and drives local innovation. The strategy has risks. Without enough high-value domestic jobs, the program could lead to a “brain drain” as newly skilled experts seek higher salaries abroad. 

The government's challenge is to build a domestic tech scene that can absorb and retain these AI professionals.

The path to becoming a regional AI leader

The Philippines has shown progress in its overall AI readiness, rising to 56th place in the Government AI Readiness Index 2024, up from 65th in 2023. This upward trajectory points to a deliberate national strategy to transition the country's digital economy. 

Initiatives like the AI Academy are designed to shift the workforce's focus from traditional outsourcing roles to more complex, high-value services in AI development, data analytics, and cybersecurity.

The collaboration with Sutherland serves as a critical test of the government’s ability to execute an integrated, national technology policy. Its success will depend on the sustained coordination between the DICT, DTI, DOST, and TESDA. 

Successfully building this talent pipeline will not only attract further foreign investment but also solidify the Philippines' position as a hub for advanced digital innovation. The outcome will determine if the nation can effectively strengthen its competitiveness and secure a more resilient economic future in the global digital market.