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AI gold rush in Singapore needs more talent than tech
Singapore is investing heavily in AI, but its success hinges on equipping its workforce with the skills to effectively apply this technology. This means prioritising training, addressing ethical concerns and fostering a culture of AI literacy
Artificial intelligence (AI) is often seen as the golden key to boundless productivity and innovation. In Singapore, a digital frontrunner, AI represents a pivotal opportunity. Yet, despite a tech-savvy workforce, many workers still struggle to apply AI effectively in their daily tasks. Without the right expertise, Singapore risks losing its competitive edge in a global AI race, where practical know-how matters as much as the technology itself.
AI offers strong returns, but TeamViewer’s AI opportunity report finds high implementation costs are a key barrier for 30% of businesses. In AI-advanced markets like Singapore, replacing legacy technology and addressing financial hurdles are essential steps to successfully integrate AI and unlock its potential.
Despite these hurdles, AI remains a powerful tool, ready to be unlocked by teams who can integrate it effectively into their operations – offering far-reaching benefits beyond technical experts.
The stakes: competitiveness and economic resilience
AI’s potential to redefine productivity is vast. Research from McKinsey shows that AI innovation in products and services could add up to about 7% or around $6tn to the world’s GDP by 2030.
In Singapore, where AI is backed by significant government investment, the potential for transformative impact across sectors like finance, healthcare, and logistics is immense. However, AI’s benefits are not guaranteed; they depend on workers who can leverage these tools to drive business results, not just automate tasks.
AI skill demand is surging, with LinkedIn noting a 29% rise in related job postings in 2023. While Singapore is well-equipped with government programmes and tech initiatives to meet this demand, the real challenge lies in practical integration and training. Success in AI depends on building a workforce skilled in applying AI for competitive advantage.
Building an AI-literate workforce
In 2021, Alibaba launched “AliMe”, a generative AI tool that helps e-commerce sellers in China create search engine optimised product descriptions in seconds, boosting small business productivity. This innovation highlights AI’s potential in creative industries.
The shift from AI experimentation to practical application is a global trend, with our report indicating that 61% of decision-makers seek solutions that deliver tangible results. TeamViewer’s AI-powered Session Insights is an example of automating session documentation and providing actionable analytics. The real value of AI lies in tools that improve everyday tasks.
However, many workers, especially in less digitally mature sectors, feel unprepared. A recent report found that 64% of professionals have benefited from AI, but only 24% believe their teams are skilled at applying it to complex tasks. This gap underscores the need for widespread AI education.
Leaders need to clearly communicate what their AI strategies are and outline how roles will evolve for the better. For Singapore’s AI strategy to succeed, organisations must prioritise AI training for all employees, from entry-level to C-suite, and foster cross-departmental support to ensure AI becomes integral across business functions.
Enabling career growth and retention
Bridging the AI skills gap offers significant benefits for Singaporean businesses, driving career growth and employee retention. A recent Unisys survey found that nearly 80% of employees believe AI expertise accelerates career advancement, with 44% reinvesting time saved through automation into further training.
In 2022, Singapore-based Copy.ai launched an AI-powered content platform, enabling small and medium-sized businesses to create search engine optimised content efficiently. Such initiatives highlight the growing recognition of AI literacy as key to shifting employees from repetitive tasks to more strategic roles.
TeamViewer’s AI opportunity report shows that 73% of respondents view AI as essential for career growth, with those more familiar with AI reporting greater confidence in using it. This is particularly evident in AI-advanced nations like Singapore (94%) and the US (87%), where respondents are more comfortable with AI compared to lower adoption countries like France (76%).
Addressing the real challenges
AI adoption comes with its challenges, particularly the high costs, which are a barrier for smaller firms. Yet, the cost of inaction may be greater. TeamViewer’s report reveals that 26% of businesses – and up to 32% in Singapore – view the lack of AI adoption as a competitive risk, with potential revenue losses from missed automation opportunities. For Singapore, maintaining an edge in AI has become a strategic necessity.
As AI adoption grows, so do concerns about security and privacy, especially in sensitive sectors like finance and healthcare. Our research shows that decision-makers are cautious about AI’s data risks, requiring robust security measures and transparent policies to address these concerns. With the correct training and processes in place these risks can be mitigated and the full potential of AI realised.
Ethically, AI can perpetuate biases due to the data it processes. As Singapore scales its AI initiatives, it is essential to implement clear ethical guidelines to ensure responsible use and prevent misuse.
Singapore’s commitment to AI-driven growth is evident in its forward-thinking policies, but true success will depend on equipping its workforce to use AI responsibly and effectively. The promise of AI – greater productivity, innovation, and a more dynamic economy – is real. But to realise this promise, we need more than investment in technology; we need investment in people.
Encouragingly, our research shows that 81% of Singaporean businesses plan to increase AI training within the next six to 12 months. Training programmes, clear ethical frameworks, and a commitment to practical, real-world applications are needed. For Singapore to lead, we must ensure that our workforce is not just AI-aware but AI-capable. Only then can AI’s full benefits be unlocked, positioning Singapore as a global hub of innovation and talent.
Sojung Lee is Asia-Pacific president of TeamViewer
