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By Lyon Poh, Partner, Head of Corporate Transformation, ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø in Singapore, Lee Bo Han, Partner, R&D and Incentives Advisory, ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø in Singapore and James Wilson, Partner, Technology Consulting, Advisory, ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø in Singapore

The emergence of new artificial intelligence (AI) capabilities has sent shock waves through the tech scene in recent weeks, reminding us that even industries known for innovation are not immune from the impact of disruption.

The world is likely to see more of such developments in the “Intelligent Age�, where AI, quantum computing and other new technologies are redefining global economies. For Singapore, this era presents an opportunity to lead purposefully by going beyond adoption to focus on trusted, purpose-driven advancements. Policies and funding outlined in Singapore Budget 2025 can provide a robust foundation for realising this vision.

Singapore’s compact size and advanced digital infrastructure solidify its reputation as a global testbed for applying emerging technologies. This unique advantage enables the country to boldly experiment with innovative solutions and trial, refine, and scale up applications that are not only impactful locally but also adaptable for global relevance.

To compete effectively on the global stage, Singapore must channel its efforts into areas of deep specialisations. Sectors such as finance and healthcare offer ideal opportunities to leverage AI as efficiency and precision are paramount. Strategic investments under Budget 2025 would not only position Singapore as a leader in delivering next-generation trusted solutions but also drive economic growth while bringing societal benefits, particularly in healthcare innovation.

These investments would especially benefit small and medium-sized enterprises (SMEs), which make up the backbone of the Republic's economy and face challenges in keeping pace with AI adoption. Empowering and guiding SMEs to harness AI effectively is essential for driving sustainable economic growth.

To help businesses, Singapore needs to take a targeted approach to overcoming barriers such as funding constraints and limited technical expertise. First, grant programmes should prioritise tailored, sector-specific AI use cases that are pertinent to SMEs and can be deployed at scale. Partnerships involving private firms, technology providers, practitioners and/or academia can co-develop user-friendly AI tools, thus enabling SMEs without in-house expertise to adopt advanced technologies.

Second, promoting industry-wide data standardisation would improve system integration and connectivity among SMEs, creating a seamless ecosystem that fosters collaboration. Such advancements in AI adoption would not only enhance SME productivity, but also drive sustainable economic growth.

The rapid evolution of AI challenges Singapore to ensure its workforce can rise to meet the demands of this new era. While technical expertise, such as coding and AI development, remains critical, fostering adaptability, creativity and an innovative mindset across the workforce is equally important to fully unlock AI’s potential.

Shifts toward agentic AI—where systems make decisions autonomously—underscore the need for enhanced collaboration between humans and machines. To prepare for these advancements, the Republic must continue investing in structured training programmes aligned with initiatives such as Forward Singapore. These programmes should provide IT professionals with advanced capabilities while also equipping employees in non-IT roles with foundational AI literacy to boost productivity.

Preparing future generations for the Intelligent Age begins in schools, where children can gain early exposure to AI applications. For adults, financial incentives and continuous education initiatives can help individuals keep pace with evolving job roles. Businesses can accelerate this transition by adopting micro-credentialling programmes paired with on-the-job training to address immediate skill gaps efficiently. By emphasising lifelong learning, Singapore can cultivate a versatile workforce that remains competitive and resilient.

Sustainability must underpin technological progress rather than serve as an afterthought. This integration not only ensures regulatory compliance, but also appeals to forward-looking investors. Singapore stands at the intersection of sustainability and innovation with its Green Plan and AI initiatives.

A “green mindsetâ€� should be instilled in technology professionals such as software developers to embed sustainability in their work. ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø, in its Advancing Digital Sustainable Talent for the Future guide, provides valuable strategies to upskill digital talent and champion “Green by Designâ€� principles. By embedding sustainability in daily business operations, companies can achieve environmental targets and economic growth simultaneously.

AI’s role as a driver of sustainability is evident through its ability to optimise energy use or lower supply-chain emissions. Businesses adopting “Green by Design� strategies position themselves advantageously within a global market increasingly attuned to environmental responsibility, ensuring long-term growth and competitiveness.

Singapore must balance its efforts to lead in AI adoption with robust governance frameworks to foster trust and accelerate the technology’s use. A risk-based approach to AI design and development should be integral to the country’s governance strategy, encouraging innovation while maintaining ethical standards. Such frameworks would reduce the time to market for new solutions, giving businesses the confidence to scale up AI-driven innovations swiftly.

The Republic’s prominence in global trade also allows it to influence international AI governance. Aligning domestic standards with global norms, while promoting its unique approach, will ensure that Singapore remains a key player in setting responsible innovation benchmarks. This will reinforce the nation’s reputation as a hub for trustworthy AI practices.

Singapore’s success in the Intelligent Age depends on leading rather than following. This requires narrowing the AI adoption gap for SMEs, preparing a future-ready workforce, embedding sustainability in innovation, and fostering trust through robust governance.

With initiatives under Budget 2025, Singapore can craft a road map for sustainable and inclusive progress. By tackling challenges proactively and leveraging its unique strengths, the country can establish itself as a global benchmark for responsible and impactful technological leadership in an increasingly AI-driven world.