SMEs can seek government help to embark on AI, sustainability journey: panellists

SMALL and medium-sized enterprises (SMEs) who are daunted by the idea of adopting artificial intelligence (AI) or pursuing sustainability can turn to government schemes for help, suggested panellists at a post-Budget roundtable on Friday (Mar 15).

Only about 4 per cent of Singapore’s SMEs have used AI or machine learning in their operations – compared to 95 per cent who have adopted digital tools, noted Minister of State for Trade and Industry Low Yen Ling.

“I think we will have to really support our SMEs to learn more about how to leverage AI,” she said. “We will address their fears and concerns, lower the barriers to entry, (and) certainly lower the cost.”

She was one of three panellists at the roundtable, hosted by The Business Times and presented by global cloud accounting platform Xero Asia.

Some areas where SMEs can adopt AI include marketing and customer engagement. In effect, such AI tools represent an “additional army of staff” that can handle basic work, Low said.

For instance, SMEs can adopt generative AI solutions under a sandbox launched in February by Enterprise Singapore and the Infocomm Media Development Authority, she added.

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Under the sandbox, SMEs receive funding for a three-month trial of one generative AI solution of their choice.

Options include AI-powered chatbots that can engage customers at scale, and tools to generate marketing content such as customised e-mails and social media posts.

Panellist Koren Wines, managing director of Xero Asia, agreed that SMEs need to harness AI to “survive in such a competitive market”.

SMEs “need to be throwing tasks that computers can do at computers”, freeing up their staff for revenue-generating activities, Wines said. Such tasks include creating menus for restaurants and writing social media posts.

It helps that the government is “supportive and innovative”, she added.

“Usually these kinds of things are driven … out of the private sector, and then the government’s running behind to catch up. Not in Singapore.

“In Singapore, the government is listening and looking for ways to carve things out in terms of digitalisation, and bring the market and SMEs on that journey.”

Yet, panellist Vicky Hwang said that many SMEs are hesitant to adopt AI tools as “they just don’t know where to begin”.

This is despite the fact that SMEs’ small size makes them more nimble and puts them in a “really good position” to adopt new technologies, said Hwang, who is chief executive of food and beverage operator Chyau Fwu Wine & Spirits.

“You can gain a first-mover advantage over your larger competitors just by adopting (AI) first,” she added.

Burnishing green credentials

Sustainability is another area that SMEs may need help to explore, said panellists.

To future-proof their business operations, SMEs should look into voluntary reporting of their sustainability efforts, because their clients may eventually demand this of them, Low said.

Noting that the challenge is always “where to start, how to start, what to map out, how to measure and how to audit”, she added: “The first important step is a sustainability report.”

The government will help with a programme that funds 70 per cent of eligible costs for SMEs producing their first sustainability report, if they take part in the first year of the scheme.

This funding falls to 50 per cent in the next two years of the scheme. Announced during the Ministry of Trade and Industry’s Committee of Supply debate in February, the scheme is set to be launched late this year.

“We hope that in the shortest possible time, we get as many of our 260,000 SMEs (as possible) to at least publish their first sustainability report,” said Low.