Singapore has digital foundation for an AI-ready e-commerce sector

ARTIFICIAL intelligence (AI) – and more recently, generative AI – is changing the way businesses grow, engage customers, and operate. In the retail sector alone, AI is projected to generate between S$400 billion and S$660 billion in annual value globally, transforming everything from product discovery to customer service.

Singapore has laid a strong foundation to lead in this AI-driven future. With strong digital infrastructure, a forward-thinking Smart Nation strategy, and robust policy support, the groundwork for AI adoption is already in place. Core sectors such as logistics and retail – both critical to e-commerce – are beginning to see the benefits of this transformation.

Yet, there appears to be a disconnect between Singapore’s readiness and actual implementation within the e-commerce industry. Despite substantial advantages, online sellers in Singapore remain surprisingly modest in their AI implementation, which signals a strategic vulnerability in this rapidly evolving digital economy.