AI and design will see wider adoption only if tools and systems are designed well: Tan Kiat How

SINGAPORE – More companies in Singapore view artificial intelligence (AI) as a “practical tool” for growth and innovation today, with many already moving past the experimentation stage and actively deploying AI in their daily operations.

Senior Minister of State for Digital Development and Information Tan Kiat How said this at the inaugural Design AI and Tech Awards ceremony on May 19, an event that recognised enterprises that harness design, AI and technology to tackle real business challenges.

He noted that according to latest available figures, enterprise adoption of AI has grown steadily from 34 per cent in 2022 to 46 per cent in 2024.

In 2024, close to 3,000 small and medium-sized enterprises (SMEs) here adopted AI-enabled solutions from local retailers – making use of the technology to help them forecast demand, optimise venues and reduce wastage.

Mr Tan added that with this greater adoption of AI, SMEs should take advantage of various government initiatives and make use of the platforms and tools on offer.

He cited examples such as the Chief Technology Officer-as-a-Service, which offers over 300 pre-approved digital solutions, nearly a third of which were AI-enabled in 2024 alone.

It supported more than 330,000 users and helped some 3,000 SMEs adopt AI to enhance operations, improve customer efficiency and make informed decisions.

Another tool is the SMEs Go Digital programme, which has benefited close to 100,000 SMEs since 2017 by helping them digitalise at their own pace to suit their needs.

“Innovators and start-ups in Singapore who find solutions to common issues should make use of these platforms to reach out to SMEs and firms,” Mr Tan said.

These platforms are not just for end users but also for innovators to scale up and implement their solutions in Singapore and overseas.

Beyond SMEs, Mr Tan also highlighted the importance of helping workers outside traditional tech sectors, by providing clear and practical guidance on how roles are evolving and to keep pace with them.

In his speech at the Singapore University of Technology and Design (SUTD), Mr Tan also spoke of the focus on enrolling more students in information and digital technology (IDT) courses.

In 2024, around 8,000 students were enrolled in such courses across universities, polytechnics and the Institute of Technical Education.

IDT places at universities have increased from 3,000 in 2020 to 4,000 in 2025, accounting for more than one in four degree places, Mr Tan said.

Universities are also making AI more accessible, practical and relevant across fields beyond tech, such as architecture, sustainable design and engineering product development.

“It’s not about our technology, it’s our people and talent,” he said.

“AI and design will only be widely adopted if the tools are designed well, with the user interface and experience fitting into existing workflows.

“Designers not only need skills but (they) also need to understand users and their needs.”

The Design AI and Tech Awards, jointly organised by The Business Times and SUTD, saw three finalists named as the 2025 winners – LionsBot, MetaOptics Technologies and Sengkang General Hospital.

The awards were open to all companies, international and local, including SMEs, start-ups and large corporations.

Applicants were assessed across six criteria: design thinking process and strategies; originality; utilisation of AI and advanced technologies; ethical consideration and sustainability; aesthetic and functional qualities; and whether the design has made quantitative and qualitative impact.

THE BUSINESS TIMES