Table of Contents
Key Takeaway
- 📊 ₱650 million for AI upskilling Philippines: The Private Sector Advisory Council (PSAC) recommended releasing ₱650 million from the Higher Education Development Fund (HEDF) to CHED for AI upskilling programs in colleges and universities starting 2026. The fund would build the country’s AI talent pipeline and equip students with skills needed by emerging industries.
- 🏗️ National AI Implementation Taskforce proposed: PSAC called for a whole-of-nation task force to coordinate AI adoption across government agencies, businesses, schools, and technology groups. The task force would focus on AI education, technology infrastructure, and responsible AI policy. President Marcos convened the joint PSAC meeting on August 5, 2026.
- 🗣️ Sabin Aboitiz warns: “AI is no longer a technology of the future”: PSAC Strategic Convenor and Aboitiz Group CEO Sabin Aboitiz said the Philippines has a National AI Strategy but needs to move from planning to implementation. “Our priority is to make sure every Filipino has the opportunity to benefit from AI,” he said.
- 🏭 Semiconductor and electronics roadmap reaffirmed: PSAC also backed the semiconductor roadmap, noting the industry’s potential to create high-value jobs and attract investments that strengthen the Philippines’ position in the global tech supply chain.
- 🎓 500 job fairs, 322,000 job seekers served: Since November 2023, nearly 500 job fairs across 15 regions have served over 322,000 job seekers through government-private sector partnerships. The 10-year National Education and Workforce Development Plan (NatPlan) aims to close the job-skills mismatch in AI and semiconductor fields.
On August 5, 2026, President Ferdinand Marcos Jr. convened the fifth meeting of the Private Sector Advisory Council (PSAC) Education and Jobs Sector Group at Malacañang. The joint session, held with PSAC’s Digital Infrastructure Sector Group, produced a set of recommendations that could reshape how the Philippines prepares its workforce for artificial intelligence. At the center of the proposals: a ₱650 million fund for AI upskilling Philippines programs in higher education, a national task force to coordinate AI implementation, and a reaffirmed commitment to the semiconductor and electronics roadmap. The push for AI upskilling Philippines programs reflects a growing consensus among Philippine business leaders that the country has a national AI strategy on paper but lacks the execution machinery to turn plans into jobs, skills, and economic growth.
The PSAC Proposal: What Was Recommended on August 5
The PSAC Education and Jobs Sector Group presented five core recommendations to President Marcos during the August 5 meeting at Malacañang. Each recommendation addresses a specific gap in the country’s AI readiness — from funding and coordination to workforce training and industry alignment.
According to the Manila Bulletin, the recommendations include creating the National AI Implementation Taskforce through an administrative order (AO), funding AI upskilling in higher education, accelerating the semiconductor roadmap, and institutionalizing long-term public-private collaboration in education and workforce development. The Daily Tribune reported that the proposed task force would bring together government agencies, industry groups, academe, and other stakeholders under a unified implementation framework.
The Five Core Recommendations
| # | Recommendation | What It Does |
|---|---|---|
| 1 | National AI Implementation Taskforce | Created via administrative order to coordinate AI adoption across all government agencies, businesses, and schools. Replaces fragmented implementation with a single coordinating body. |
| 2 | ₱650M HEDF Release for AI Upskilling | Funds AI upskilling programs in colleges and universities beginning 2026. Builds the AI talent pipeline by equipping students with skills for emerging industries. |
| 3 | Semiconductor and Electronics Roadmap | Reaffirms support for the semiconductor roadmap to create high-value jobs, attract investments, and strengthen the Philippines’ position in the global tech supply chain. |
| 4 | NatPlan Institutionalization | Strengthens partnership between the Education and Workforce Development Group (EWDG), Cabinet cluster, and IACCE to implement the 10-year National Education and Workforce Development Plan. |
| 5 | Curriculum Acceleration for AI and Semiconductors | Accelerates curriculum development for fast-growing sectors so graduates acquire skills that match evolving industry needs. |
Why the Philippines Needs an AI Implementation Taskforce Now
The Philippines already has a National AI Strategy. The National AI Strategy Roadmap 2.0 (NAISR 2.0), launched in July 2024 by the Department of Trade and Industry (DTI), is structured around two pillars — innovation and implementation — and outlines seven strategic imperatives covering research and development, workforce development, and AI governance. The OECD documented the roadmap as a comprehensive framework with thirty strategic tasks distributed across government agencies.
But PSAC’s recommendation acknowledges what many in the Philippine tech community have observed: the strategy exists on paper, but implementation remains fragmented. Responsibilities are spread across the DTI, CHED, TESDA, DICT, DOST, and other agencies without a single coordinating body. The result is overlap in some areas, gaps in others, and no clear accountability for outcomes.
Sabin Aboitiz, PSAC Strategic Convenor and Aboitiz Group president and CEO, framed the urgency directly: “Artificial intelligence is no longer a technology of the future — it is already changing the way people work, learn and do business today.” He added: “Our priority is to make sure every Filipino has the opportunity to benefit from AI by creating better jobs, developing new skills, and strengthening industries that will drive long-term economic growth.”
The proposed task force would address three key areas: AI education and workforce training, technology infrastructure and research, and policies that encourage responsible AI use. PSAC emphasized that AI adoption should extend beyond large companies — students, workers, entrepreneurs, and MSMEs should all have access to AI tools that improve productivity and create new opportunities.
The ₱650 Million CHED Fund: How AI Upskilling Philippines Programs Would Work
The most concrete recommendation from the August 5 meeting is the release of ₱650 million from the Higher Education Development Fund (HEDF) to the Commission on Higher Education (CHED). The HEDF is a dedicated fund established under the Higher Education Act of 1994 to support the development of higher education institutions in the Philippines. The ₱650 million would be allocated specifically for AI upskilling Philippines programs in colleges and universities beginning in 2026.
The funding is intended to address a critical gap: Philippine universities are not producing enough graduates with AI skills to meet industry demand. A 2025 report from the Analytics and Artificial Intelligence Association of the Philippines (AAP) noted that CHED, TESDA, and AAP had already begun developing a National AI Upskilling Roadmap, which was given the green light by President Marcos after the PSAC Education and Jobs Sector Group presented the proposal on June 25, 2025. The ₱650 million fund would operationalize that roadmap at the campus level.
For Filipino professionals, the CHED fund matters because it signals a shift from voluntary to institutionalized AI training. Colleges and universities that receive HEDF funding would be expected to integrate AI literacy, data analytics, and machine learning fundamentals into their curricula — not just in computer science programs, but across business, engineering, healthcare, and agriculture degrees where AI tools are increasingly used in professional practice. The AI upskilling Philippines agenda, if funded, would make AI education a standard part of Philippine higher education rather than an elective.
What the ₱650M Could Fund
| Program Type | Estimated Allocation | Impact |
|---|---|---|
| AI faculty training and certification | ₱150-200M | Train 2,000-3,000 faculty members in AI fundamentals and teaching methods |
| AI lab equipment and software licenses | ₱200-250M | Equip 100-150 universities with AI computing labs, cloud credits, and software tools |
| Curriculum development grants | ₱100-150M | Fund 50-75 universities to redesign existing courses with AI integration |
| Student AI scholarships and competitions | ₱100-150M | Support 5,000-10,000 students with AI-focused scholarships, hackathons, and research grants |
Note: The allocation estimates above are illustrative, based on similar HEDF program structures. The actual distribution would be determined by CHED in consultation with PSAC and industry partners.
The Job-Skills Mismatch: Why PSAC Acted
Behind the PSAC recommendations is a persistent problem: the Philippines produces over 700,000 college graduates annually, but many enter the workforce without the skills that employers need. The problem is most acute in fast-growing sectors like AI, semiconductors, and digital services, where technology evolves faster than curricula can adapt.
PSAC addressed this gap through its support for the 10-year National Education and Workforce Development Plan (NatPlan), which aims to align curriculum development with industry needs. The plan strengthens the partnership between the Education and Workforce Development Group (EWDG), the Cabinet cluster for education and workforce development, and the Industry, Academe and Civil Society Council for Education (IACCE). The goal: ensure graduates acquire skills that match what employers actually need in AI, semiconductors, and digital technology.
According to PSAC, nearly 500 job fairs have been conducted across 15 regions since November 2023, serving more than 322,000 job seekers through partnerships among the government, local government units, and the private sector. These numbers show demand for jobs is strong — but they also reveal that many job seekers need additional training to qualify for high-value roles in AI and technology.
For Filipino professionals already in the workforce — including overseas Filipino workers looking to upskill — the PSAC recommendations could create new pathways. The AI skills training programs that emerge from the CHED fund could be extended to TESDA for continuing education, giving working professionals access to the same AI literacy programs being developed for university students. This matters for AI skills hiring in the Philippines, where employers increasingly look for candidates with practical AI tool experience rather than theoretical knowledge.
The Semiconductor Connection: High-Value Jobs Beyond BPO
PSAC’s reaffirmed support for the semiconductor and electronics roadmap reflects a strategic pivot. The Philippines has long been known for its BPO industry, which employs over 1.7 million people and generates $35-40 billion in annual revenue. But BPO is increasingly vulnerable to AI automation — studies suggest AI could replace 30-40% of BPO tasks within five years.
The semiconductor industry offers a different value proposition. The Philippines is already a significant player in semiconductor manufacturing and assembly, with over 200,000 workers in the sector. The government’s semiconductor roadmap aims to expand this to high-value design and R&D roles, which pay significantly more than assembly positions. PSAC’s endorsement of the roadmap signals that business leaders see semiconductors as a more durable growth path than BPO — one that AI enhances rather than replaces.
This matters for Filipino professionals choosing a career path. A semiconductor design engineer in the Philippines can earn ₱80,000-₱150,000 per month, compared to ₱25,000-₱40,000 for a typical BPO agent. The ETEEAP program already allows experienced workers to earn a college degree that qualifies them for these higher-value roles — and the CHED AI fund could expand the pipeline of graduates ready to enter semiconductor design and R&D.
How the Philippines Compares to ASEAN Neighbors on AI Readiness
The PSAC recommendations come as the Philippines races to catch up with ASEAN neighbors on AI readiness. Singapore launched its National AI Strategy 2.0 in 2023 with a people-first approach: upskilling its 3.5 million workforce with hands-on, job-specific AI training. Indonesia’s AI strategy has produced 108% talent growth and 26% adoption rate, making it ASEAN’s fastest-growing AI power. Malaysia and Vietnam have both published national AI strategies with dedicated funding for workforce development.
The Philippines has the NAISR 2.0, but implementation has lagged. The Philippine AI talent gap remains significant — there are more AI job openings than qualified candidates, and the gap is widening. PSAC’s proposal to create a National AI Implementation Taskforce is an explicit acknowledgment that the current fragmented approach is not working and that the Philippines risks falling further behind its ASEAN competitors if it does not act quickly.
For context, the ASEAN AI governance landscape is evolving rapidly, with countries that have coordinated implementation frameworks — Singapore, Indonesia, Malaysia — seeing faster AI adoption rates and greater private sector investment. The Philippines has the talent and the English proficiency to compete, but lacks the institutional coordination that PSAC’s task force would provide.
What Filipino Professionals Should Do Now
The PSAC recommendations are proposals, not laws. The National AI Implementation Taskforce would require an administrative order from the President to be created, and the ₱650 million HEDF release would need approval from CHED and the Department of Budget and Management. But the direction is clear: the Philippine government and business leaders are aligning around a coordinated AI upskilling agenda.
For Filipino professionals who want to prepare now, before these programs launch, there are existing options:
- Earn AI certifications: AI certifications from Google, IBM, Microsoft, and AWS are available online and recognized by Philippine employers. Many can be completed in 3-6 months for under ₱5,000.
- Use DMW AI courses: The Department of Migrant Workers offers free AI courses for OFWs through partner platforms, covering AI fundamentals, data literacy, and digital skills.
- Enroll in ETEEAP: Experienced professionals can earn a college degree through CHED’s ETEEAP program, which gives academic credit for work experience and offers online options for OFWs.
- Build practical AI skills: Filipino freelancers and professionals should focus on AI tools they can use immediately — ChatGPT, Copilot, Claude, Gemini — and build a portfolio of AI-assisted work samples.
The Bottom Line: From Strategy to Execution
The August 5 PSAC meeting marks a shift in the Philippine AI conversation — from whether the country should adopt AI to how quickly it can build the institutions, funding, and workforce to do so. The ₱650 million CHED fund and the National AI Implementation Taskforce are concrete proposals with specific dollar amounts and administrative mechanisms. If implemented, they would give the Philippines its first coordinated, funded AI upskilling Philippines program at the national level.
For the 11.3 million Filipino workers in the digital workforce, and for the millions more who will need AI skills in the next five years, the PSAC recommendations represent a pathway — not a guarantee, but a clear signal that the country’s business and government leaders are taking AI upskilling Philippines seriously. The next test will be execution: whether the task force is created, whether the ₱650 million is released, and whether universities can deliver AI training that meets industry standards. Without coordinated AI upskilling Philippines programs, the country risks watching its ASEAN neighbors pull ahead.
As Sabin Aboitiz said: the technology of the future is already here. The question is whether the Philippines will be ready for it.
Frequently Asked Questions About AI Upskilling Philippines 2026
What is the PSAC recommendation for AI upskilling in the Philippines?
The Private Sector Advisory Council (PSAC) recommended creating a National AI Implementation Taskforce and releasing ₱650 million from the Higher Education Development Fund (HEDF) to CHED for AI upskilling Philippines programs in colleges and universities starting in 2026. The proposal was presented to President Marcos on August 5, 2026. The AI upskilling Philippines fund would be the first national-level investment in coordinated AI workforce training.
How much is the Philippines investing in AI upskilling?
PSAC recommended ₱650 million from the Higher Education Development Fund for AI upskilling Philippines programs. This fund would support faculty training, AI lab equipment, curriculum development, and student scholarships in colleges and universities. The actual release requires approval from CHED and the Department of Budget and Management.
What is the National AI Implementation Taskforce?
The National AI Implementation Taskforce is a proposed coordinating body that would align government agencies, businesses, schools, and technology groups in implementing the Philippines’ National AI Strategy (NAISR 2.0). It would be created via administrative order and would focus on AI education, technology infrastructure, and responsible AI policy.
How does the PSAC proposal affect Filipino professionals?
The PSAC proposal could create new AI upskilling Philippines pathways for Filipino professionals through universities, TESDA, and continuing education programs. It also signals that employers increasingly value AI skills in hiring decisions, creating incentives for workers to pursue AI training and certifications proactively.
How does the Philippines compare to other ASEAN countries on AI readiness?
Singapore, Indonesia, and Malaysia have all launched coordinated national AI strategies with dedicated workforce funding. The Philippines has the NAISR 2.0 roadmap but has lagged in implementation. PSAC’s proposal to create a National AI Implementation Taskforce is designed to close this gap by providing a single coordinating body for AI adoption.
Can OFWs benefit from AI upskilling programs in the Philippines?
Yes. The Department of Migrant Workers already offers free AI courses for OFWs through partner platforms. The CHED fund, if approved, could expand these AI upskilling Philippines programs through TESDA and continuing education channels, giving OFWs access to the same AI training being developed for university students.
What is NAISR 2.0?
The National AI Strategy Roadmap 2.0 (NAISR 2.0) was launched in July 2024 by the Department of Trade and Industry. It is structured around two pillars — innovation and implementation — and outlines seven strategic imperatives covering R&D, workforce development, digitization, and AI governance. PSAC’s proposal aims to accelerate its implementation.
