Singapore’s next AI wave: From the incredible to everyday 

SPECTACULAR breakthroughs in artificial intelligence (AI), led most recently by DeepSeek R1, have rocked global markets.

Outperforming incumbent technologies in major benchmarks, DeepSeek has prompted investors to reassess valuations, causing volatile stock swings for established tech firms. Crucially, it delivers top-tier performance at a lower computational cost, raising hopes that AI – once dominated by big-budget titans – may soon be within reach for a far broader range of businesses. “By making AI more accessible,” says Florian Douetteau, CEO and co-founder of enterprise AI company Dataiku, “the gains can be shared by companies that adopt it widely”.

This wave of widespread adoption comes at a pivotal moment for Asia-Pacific, where the AI market is projected to surge from US$50.41 billion in 2023 to US$734.76 billion by 2030, potentially unlocking S$4.1 trillion in economic value – S$1.1 trillion in South-east Asia alone. Singapore, in particular, stands to gain S$198.3 billion in economic benefits by 2030 as AI adoption scales, reinforcing its top ranking on Salesforce’s 2023 AI Readiness Index. This enviable position is the result of over a decade of sustained policy efforts, from the foundational Smart Nation 1.0 initiative to the more recent Smart Nation 2.0 and National AI Strategy (NAIS) 2.0 frameworks. Notably, 46 per cent of organisations in Singapore already consider themselves AI-mature, underscoring AI’s vast potential to enhance day-to-day operations – what we call everyday AI.

Everyday AI across sectors and domains

One example of where everyday AI is embedded at scale is Standard Chartered Bank. Across its operations, the bank is accelerating AI-driven solutions, fostering a culture of data-driven decision-making, and unlocking the power of analytics to drive better business outcomes. The impact has been significant – a US$34 million reduction in annual property costs and a savings of 4,000 productivity hours through its space planning and optimisation tool. In its Financial Planning & Analytics division, replacing spreadsheet-based processes with governed self-service analytics has boosted analyst productivity by a factor of 30.

Standard Chartered Bank is not alone in reaping AI’s tangible rewards. In manufacturing, Japan’s Sumitomo Rubber Industries enhanced product quality by automating critical manufacturing processes, realising a 50 per cent reduction in development time for resin drying processes. Meanwhile, electronics hardware maker Western Digital automated e-mail categorisation for over 10,000 messages weekly, reaching 80 per cent accuracy and saving 100 operational hours per month.

Collectively, these examples validate that well-deployed AI systems do more than dazzle – they create verifiable operational gains, from cutting development timelines to streamlining customer service interactions. A 2024 Forrester Total Economic Impact study reflects these benefits. It found that organisations using AI this way reported a 413 per cent return on investment over three years, 70 per cent time savings on data handling, 80 per cent less time spent on manual tasks, and a 40 per cent cut in overall AI model development times.

Scaling up everyday AI with Budget 2025

Budget 2025 marks a pivotal moment for Singapore, offering the opportunity to scale AI adoption beyond niche pilot projects and into everyday business operations. Five policy enhancements stand out.

First, Singapore is enhancing AI infrastructure to support SMEs – which make up 99 per cent of businesses and employ 70 per cent of the workforce, yet still lack the resources and expertise to invest in AI. Budget 2025 allocates S$150 million to the Enterprise Compute Initiative, which will provide eligible businesses with access to AI tools, cloud computing support, and business integration services through major cloud providers. This initiative builds on existing schemes such as the Productivity Solutions Grant and SMEs Go Digital, enabling more businesses to harness AI for productivity gains, efficiency improvements, and long-term competitiveness.

Second, a robust AI-ready workforce is also critical, and Budget 2025 reinforces mid-career AI reskilling efforts with a S$4,000 SkillsFuture Credit top-up for Singaporeans aged 40 and above, covering 9,000 AI-related courses. To ease financial constraints, workers in full-time training can receive a monthly allowance of up to S$3,000, capped at S$72,000 per worker over 24 months, while a new S$300 monthly part-time training allowance starting in 2026 will help individuals upskill while remaining employed. These efforts expand SkillsFuture Career Transition Programmes and workplace-based AI training, ensuring Singaporeans can meet the growing demand for expertise in AI, data science, and machine learning.

Third, beyond workforce development, Budget 2025 strengthens AI collaboration across industries by expanding the National Productivity Fund (NPF) with a S$3 billion boost. Beyond workforce innovation and productivity gains, this investment accelerates AI integration in sectors such as logistics, healthcare, and retail. Government-backed pilot programmes will connect multinational corporations, local firms, and research institutes, leveraging the scale and capital of larger companies while harnessing the agility and innovation of SMEs. This initiative will also reinforce Singapore’s role in semiconductors and life sciences, with the nation already supplying over 10 per cent of the world’s chips. By advancing AI and quantum computing R&D, Budget 2025 positions Singapore as a global leader in high-value innovation, rather than relying on cost competitiveness alone.

Fourth, AI adoption must be underpinned by strong governance to build trust. Rather than imposing broad, one-size-fits-all regulations, Budget 2025 reinforces Singapore’s sector-specific approach, emphasising transparency, accountability, and bias prevention. New grants will support AI governance training, certification, and ethical AI research, ensuring businesses and policymakers can navigate the evolving AI landscape responsibly. Strengthening the nation’s Model AI Governance Framework, alongside clearer data-sharing protocols, IP rights for AI-generated content, and liability guidelines for AI-driven decisions, positions Singapore as a trusted global AI hub where businesses and citizens can embrace AI with confidence.

Finally, to accelerate AI’s real-world impact, Budget 2025 is set to expand AI testbeds by building on existing innovation ecosystems. A S$1 billion National Semiconductor R&D Facility will provide industry-grade tools for prototyping and testing semiconductor technologies, reinforcing Singapore’s position as a global chip supplier. Expanding on Punggol Digital District, new testbeds in healthcare analytics, sustainability, and advanced manufacturing at one-north will provide AI innovators with access to real-world data, user feedback, and operational challenges. By integrating AI across multiple sectors, these testbeds will help accelerate industry adoption and commercialisation, ensuring that AI breakthroughs move from research to large-scale implementation.

With these strategic investments, Budget 2025 moves AI beyond the realm of research and pilot projects into everyday impact across businesses and industries, reinforcing Singapore’s position as a global leader in AI-driven progress.

Companies such as Standard Chartered Bank, Sumitomo Rubber Industries, and Western Digital showcase AI’s ability to elevate businesses across industries – when applied with a clear, outcome-driven focus. If Budget 2025 succeeds in accelerating AI’s deeper integration into Singapore’s economy, today’s market volatility could pave the way for a broader transformation – one where AI fuels sustainable growth, drives cross-industry innovation, and enhances daily work for thousands of Singaporeans.

The writer is senior vice-president and general manager of Asia-Pacific and Japan for Dataiku, a global AI platform