National AI task force, stronger branding key to Singapore’s global AI push: Report

SINGAPORE - Like many small and medium-sized enterprises (SMEs) in Singapore, software solutions company Elixir Technology is eager to ride the artificial intelligence (AI) wave.

But the SME, which offers a platform for client companies to develop their own smart and digital applications, is struggling to find enough AI talent, and the right kind, too.

“A few years ago, we tried hiring an AI expert, and it was a nightmare because, every few weeks, a company would offer him 30 per cent more pay,” said Elixir Technology co-founder Lau Shih Hor.

The company’s biggest challenge is finding a person who understands how AI can be applied “to the correct use case and the correct target market”, he said, adding that not many have such cross-domain expertise.

In mid-May, tech trade association SGTech worked with consulting firm EY to hold closed-door discussions with 40 companies, including Elixir Technology, to gather insights on how Singapore can become a trusted AI hub amid geopolitical uncertainty and tariff risks. 

EY’s nine-page report identified key bottlenecks in Singapore’s AI journey and made 14 recommendations to tackle the challenges. 

On the national level, Singapore lacks a global brand for AI – perhaps the equivalent of a Changi Airport for air travel – and does not provide enough funding for start-ups to make a global impact, said a recent report.

To tackle such challenges in this sector, the report recommended the establishment of a national-level AI task force, much like the multi-ministry task force that was set up to tackle the Covid-19 crisis, among other findings.

While Singapore has established a national AI strategy with various initiatives to push for wider AI adoption, having a dedicated task force involving multiple ministries will improve coordination, said Mr Samir Bedi, EY’s Singapore Government and public sector leader.

“Having a task force which is debating key decisions around AI value creation, (and AI’s) impact on employment and on social compact, will bring issues to prominence and allow for a lot of faster and more accelerated outcomes,” said Mr Bedi.

He was speaking at a media briefing on Sept 3 at the EY Singapore office.

SGTech executive director Yean Cheong said Singapore should take a strategic position on what type of AI innovations it is hoping to focus on, and provide more clarity to companies.

“Then, it can point us to partners and what kind of platforms or models we want to encourage to be developed,” said Ms Cheong.

Clarifying where Singapore’s AI competitive edge lies can also help in more targeted talent development, be it to nurture world-class researchers or focus on applied engineers who adapt AI for business needs.

Another issue that the AI task force can tackle is Singapore’s lack of a global AI brand.

The report highlighted that while there are various government programmes to elevate Singapore’s AI capabilities, there is currently no clear national AI brand or flagship initiative.

EY Asean data and AI leader Manik Bhandari said: “Just as Singapore has built globally recognised hubs in sectors like air travel and logistics, the ambition should now be to position Singapore as a global AI hub.

“While it will take time to build these technical capabilities, the branding and marketing story should be drafted in parallel. Launching a strong national AI brand early will help to attract AI talent, companies and investment into Singapore.”

A narrative that Singapore can emphasise is the AI savviness of its workforce, added Mr Bhandari.

The report also found that the companies in the SGTech-EY discussions expressed scepticism about Singapore’s ability to produce an AI unicorn soon, pointing to limited investor appetite and the high costs of accessing AI infrastructure.

In the global AI race, a company’s success may depend less on innovation and more on financial resources to scale quickly, sometimes by offering its services for free.

While government grants exist, funding amounts remain small.

A more selective investment strategy – placing larger bets on fewer high-potential start-ups – could raise the chances of global success.

“Singapore currently has very few start-ups that have scaled globally and achieved major success. This in turn diminishes the attractiveness of the local start-up scene to Silicon Valley venture capitalists,” said Mr Bhandari.

“Making strategic big bets could help change this dynamic and boost the nation’s standing on the global AI stage.”

EY’s report was published in late August and submitted to the Ministry of Digital Development and Information, Ministry of Trade and Industry, Ministry of Manpower, Infocomm Media Development Authority and Enterprise Singapore.

The tech association is in conversation with government agencies on the proposed policies.