Singapore’s adoption of AI shows no signs of slowing down. With clear benefits across all industries and stages of business maturity, leaders have high hopes for the technology. The country is expected to become an AI leader in Southeast Asia, projecting economic benefits of up to $198.3 billion by 2030.
In anticipation of AI’s impact on the economy, Singapore’s Smart Nation launched several initiatives this year, including investments that fund AI scholarships and overseas internships, and acquiring high-performance computing resources essential for AI research and development. Additionally, Singapore aims to more than triple the number of AI practitioners to 15,000 by 2029.
However, these initiatives come as companies are grappling with an ongoing shortage of skilled talent, particularly in the tech sector. Simultaneously, rising business costs, including those associated with adopting and implementing AI technologies, are putting pressure on companies’ bottom lines. Given these obstacles, how can Singapore’s businesses move forward and capitalize on AI’s potential?
Strategic AI investments: The willpower is there
AI has rapidly evolved from a futuristic concept to a tangible business tool. While tools like ChatGPT have brought AI into the mainstream, the technology’s potential extends far beyond chatbots. From healthcare to cybersecurity, AI is being deployed to solve complex problems and drive innovation.
According to the G-P report AI at Work: Unlocking Global Opportunities, businesses worldwide are investing heavily in AI: 81 percent of organizations have established AI programs and a further 84 percent are planning further investments. The executives surveyed named increasing efficiency and productivity as one of the main goals they hope to achieve from using AI. In addition, businesses also look to enhance customer support, increase revenue generation, and save costs.
At first glance, this sounds promising for companies, but they are also confronted with several challenges and concerns – which, in the worst case, may prevent them from remaining competitive.
AI integration or AI hesitation?
Despite the obvious benefits of AI, there is great concern among business leaders about the consequences of using the technology incorrectly – 99 percent of global business leaders surveyed fear the consequences of using AI incorrectly, with top concerns in operational disruption, legal non-compliance, financial penalties and operational disruption due to the misuse of AI.
Two-thirds (62%) of respondents globally are concerned that AI solutions are being implemented prematurely without the establishment of necessary resources and strategies. When it comes to staffing, only 2 percent of executives globally believe that their company is well-staffed to effectively implement and manage AI technologies.
A solution would be to hire qualified personnel to support the introduction of AI. However, every second respondent believes their company can master this challenge without external specialists — a misjudgment. Corporations are similarly hesitant when it comes to investing in their workforce and 60 percent report that their company invests more in AI technology and tools over the recruitment and retention of employees. But, why not combine the two?
Skills shortage: the future of AI is global
To maximize AI implementation, an interdisciplinary team of experts must be built and continuous training opportunities provided to keep the workforce’s knowledge up to date.
To meet the demand for qualified personnel, it is worth taking a look beyond national borders. There are skilled workers scattered around the world who are interested in career opportunities in Singapore, especially in STEM subjects. Thanks to flexible working models and digitalization, these talents can also work for Singapore companies from their home country. Business models such as Employer of Record (EOR) help to find skilled international workers and manage the employment relationship throughout the journey, and AI-enabled technology combined with best-in-class HR tech products will help speed up this process while ensuring local compliance.
Executives worldwide recognize the critical importance of AI technologies in opening them up to different markets and coordinating teams on a global scale. An overwhelming 96% of respondents are convinced that companies that use AI for cross-border, asynchronous work processes have a clear advantage over their competitors. AI not only helps to overcome cultural and language barriers – a point emphasized by 40 percent of the respondents – but also promotes cooperation and facilitates compliance with regulatory requirements across different markets.
The importance of AI technologies not only for Singapore but also for the global world of work and the competition for skilled labor cannot be overlooked. However, to realize AI’s full potential, organizations need to carefully evaluate where they are and what they need, including skills, resources, infrastructure, and processes. Organizations must have the necessary transformational readiness to successfully integrate these technological solutions and effectively combat the skills shortage.
Nat (Rajesh) Natarajan is the Chief Product and Strategy Officer, G-P.
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