Companies, consumers must have basic understanding of AI to reap potential benefits: DPM Gan
Singapore’s compact size makes it easier to roll out training and raise AI literacy across the population, he adds
[SINGAPORE] Singapore’s “first priority” is for companies both large and small, as well as their customers, to have at least a basic understanding of artificial intelligence (AI), to be able to reap the potential benefits, said Deputy Prime Minister Gan Kim Yong on Wednesday (Nov 12).
DPM Gan, who is also the minister for trade and industry, noted that the Republic is focusing on AI across three levels: first literacy, then integration, followed by development.
“(At) the next level, we want to develop (the) capability to integrate AI into our systems,” he said at a fireside chat moderated by DBS Group chief executive Tan Su Shan on the opening day of the Singapore FinTech Festival (SFF) 2025.
This involves AI system integrators who can identify opportunities to apply AI and boost competitiveness as well as help businesses scale up and improve efficiency.
The highest level will focus on nurturing AI developers who create new technologies, applications and tools, said DPM Gan.
Organised by the Monetary Authority of Singapore (MAS), Global Finance & Technology Network (GFTN) and Constellar, in collaboration with The Association of Banks in Singapore, SFF 2025 is looking at deepening the understanding of three transformative technologies – AI, quantum computing and tokenisation.
These have the potential to reshape financial services over the next decade, said MAS managing director Chia Der Jiun in a recent interview with The Business Times.
Reflecting this, DBS’ Tan noted that “everyone should learn at least some basic AI skills, or use it day to day”. She cited examples of her DBS colleagues in China using AI for translation, while branch staff use it to access policy information or identify required documents for account opening.
She added that more advanced, vertical use cases such as credit analysis, industry-specific insights, and coding copilots represent deeper areas of AI specialisation.
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Tan said: “The key is attitude. If we are all curious and have a good attitude, even old folks like me can learn (AI).”
Singapore’s compact size is an advantage in this regard, noted DPM Gan, as it makes it easier to roll out training and raise AI literacy across the population.
He stressed that beyond workers, companies and business leaders, users and customers must also be equipped to understand AI so that they can benefit from AI-enabled applications.
“We also need to help our customers to understand AI so that they can benefit from AI applications that the banks and businesses have put in place,” said DPM Gan.
This means not only training workers, but also educating the general population to understand and appreciate the technology, as well as recognise its risks and remain alert to potential AI-related scams.
Managing risks
Acknowledging the risks associated with AI, DPM Gan noted that managing them is also a critical priority.
He added that Singapore puts a lot of focus on developing guard rails and guidance in the development and deployment of AI technology safely and ethically.
He emphasised that creating such guidelines is more than a national effort as Singapore must collaborate with like-minded countries to establish shared rules and standards. This includes initiatives such as Project MindForge, which aims to develop a clear and concise framework on the responsible use of generative AI in the financial industry.
DPM Gan cautioned that without such careful management, “AI will create more harm than good”.
He added that careful implementation of the technology can deliver significant benefits, noting that DBS, for instance, is already deploying many AI applications on the ground.
Tan shared that DBS began its foray into AI almost 10 years ago with what is termed “classic AI” – a largely rules-based system.
“A key thing we found was making sure your data is governed,” she said.
The bank needed to create a centralised data lake with clear metadata, uniform processes, and established rules and protocols. It could then begin deploying AI models, growing from a few hundred models initially to around 1,500.
“What we did was to change the way we organise our people from vertical silos to horizontal organisation,” said Tan.
She noted that data must have purpose: it should be relevant, explainable, and protected by clear guard rails. Only authorised personnel should access specific data, ensuring ethical and secure use. With these foundations, new technologies, including generative AI and AI agents, could be applied safely.
She acknowledged that this transformation requires significant cultural and attitude shifts, emphasising that DBS, like Singapore, must “face it upfront, unlearn, re-learn, experiment and share”.
This comes as AI will further drive innovation and help regulators stay ahead, said Dr Axel Weber, international advisory board member and president of the Center for Financial Studies at GFTN.
“After a decade of disruption, we can now expect the next decade to be one of compliance and collaboration,” he pointed out during his opening session at the SFF on the impact of fintech on financial services and regulation.
Dr Weber, the former chairman of UBS Group, added that “good regulation is key to stable financial markets”.
Drawing from his experience as an academic, regulator, central banker, and banker, he said that in fintech, regulation should act as a “safety balance, not a brake”.
During the event, a strategic AI partnership between Singapore and the United Kingdom was jointly announced by MAS and the UK’s Financial Conduct Authority (FCA).
The financial institutions in both Singapore and the UK will benefit from expanded opportunities for innovation and cross-border learning, their joint press statement noted.
“MAS and FCA will explore the joint testing of AI solutions, exchange of regulatory insights, discussions on responsible AI, and collaborative events to spotlight best-in-class approach,” it added.
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