How to move the needle on artificial intelligence adoption

Taking a collaborative approach

SMEs also stand to benefit from AI solutions that have been developed through the experiences of larger players in the sector. The ability to implement such solutions with confidence, knowing that they have been proven to work, can be motivating.

Under the existing Productivity Solutions Grant (PSG), there are existing off-the-shelf digital solutions that offer SMEs a cost-effective and accessible entry point for AI adoption. However, these primarily cater to uses in general business functions.

It would be highly complementary to add tailored AI solutions developed through the ECI to the suite of PSG-supported solutions. In this regard, the ECI also potentially creates opportunities for enterprise use cases to be used as blueprints for broader AI adoption, which could uplift entire sectors.

Alternatively, Singapore could create a platform akin to a national AI application store that houses all AI solutions that can be adopted with government support. This AI store could also include shared services for AI maintenance and support as well as cloud and infrastructure management. This could potentially drive down the total cost of technology ownership, ensuring that both affordability and innovation remain priorities.

AI for Singapore, made in Singapore

The ECI marks a pivotal step in advancing AI adoption in Singapore, particularly in addressing enterprise needs for sector-specific solutions that are not available off-the-shelf from software providers.

The initiative strengthens enterprises’ ability to adopt — and scale — AI, laying the foundation for industry-wide transformation. It also provides fertile ground for nurturing the AI talent pool while facilitating knowledge transfer.

With lowered adoption barriers, at least from funding and expertise perspectives, SMEs are better enabled to keep pace with the AI evolution. A strong and innovative Singapore enterprise core will further enhance the country’s attractiveness to foreign investments and position it favorably in the race for leadership in AI innovation.

This article was first published in The Business Times on 11 April 2025.

Summary

Enterprises may not be able to afford the significant infrastructure and talent investments needed to build AI applications in-house and move beyond proofs-of-concept and pilot projects. The ECI allows them to offset AI development expenses and tap into a higher level of technical expertise to help achieve significant productivity gains and cost efficiencies.