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At a recent data and AI event, Senior Minister of State for Digital Development and Information, Mr Tan Kiat How, highlighted the transformative impact of AI on businesses and the broader economy, with a particular focus on technology’s role in driving innovation and efficiency.
AI has swiftly transitioned from a buzzword to a practical tool that enhances daily tasks and optimises business processes. It is now widely used to simplify routine activities, such as managing messages and planning itineraries, while professionals across various sectors are leveraging AI to automate workflows and boost productivity. Recent reports indicate that the adoption of Generative AI tools in workplaces has nearly doubled in just six months, reflecting this growing trend.
AI provides significant value to enterprises by automating tasks and optimising operations. A survey shows that around 40% of companies use AI for data aggregation, and 38% for idea generation, highlighting its role in driving innovation and competitiveness. In sales and marketing, AI’s analysis of customer behaviour has increased sales leads by 50% and reduced costs by up to 60%.
The Singapore Government recognises the critical role AI plays in business transformation and has actively encouraged the adoption of AI technology, particularly among Small and Medium Enterprises (SMEs). SMEs are a vital component of the Singaporean economy, making up 99% of all businesses, providing 70% of jobs, and contributing around 50% of GDP. However, SMEs often lack the resources and capabilities to integrate AI tools into their business processes fully.
To address this gap, the government has launched initiatives such as the Digital Enterprise Blueprint, which outlines strategies for advancing digitalisation across enterprises. A key focus is empowering SMEs to adopt emerging technologies, particularly AI.
One significant initiative under this blueprint is the Infocomm Media Development Authority (IMDA)’s SMEs Go Digital program, which aims to raise the AI capabilities of pre-approved solution providers. SMEs that adopt solutions through this initiative can access affordable, ready-to-use AI tools, with up to 70% funding support from the government.
Additionally, the government has introduced 22 Industry Digital Plans (IDPs) across various sectors, providing SMEs with guidance on adopting digital solutions at different stages of growth. These plans are being updated to include sector-specific AI solutions, making AI more accessible and relevant to a broad range of enterprises.
Quality data is the foundation of any effective AI system. A report identified inaccurate data and limited expertise in data management as significant barriers to AI adoption. To address these challenges, a global data, analytics, and AI company is playing a crucial role in Singapore by ensuring data privacy, managing control issues, and overcoming data silos.
For example, a leading ride-hailing app streamlined data access and insights by centralising consumer data using a Data Intelligence Platform. Similarly, a mobility service provider improved data management, enabling AI-driven enhancements in efficiency and market effectiveness.
The Singapore Government’s commitment to fostering a vibrant AI ecosystem is reinforced by the National AI Strategy 2.0, which aims to attract innovative companies and drive AI advancements. The presence of leading global players in Singapore’s tech landscape is a testament to the country’s strategic position as a regional technology hub.
Numerous examples demonstrate how companies are crucial to advancing our AI industry. The recent decision by a global data and analytics company to establish its regional headquarters in Singapore further solidifies the city-state’s role as a technological innovation hub in Southeast Asia.
As Singapore continues to push the boundaries of AI adoption, the focus remains on equipping businesses, particularly SMEs, with the tools and resources necessary to harness AI’s full potential, thereby driving innovation and economic growth.
