Singapore could gain SGD $53 billion from AI productivity by 2080

A new report commissioned by Google outlines Singapore's potential to leverage artificial intelligence (AI) for sustained economic growth and increased productivity over the next six decades.

The Economic Opportunity Report projects that AI could generate more than SGD $53 billion (USD $40 billion) in value through enhanced labour productivity alone. The findings suggest that automating routine tasks with AI technology could free up nearly 21 working days per year for each worker in Singapore, allowing more time to be dedicated to higher-value work.

The report explores various sectors where AI adoption may be particularly impactful. In healthcare, AI is estimated to reduce drug discovery time by approximately 40%, accelerating the delivery of new treatments. The report also highlights the increased efficiency AI could bring to cybersecurity efforts, suggesting AI-driven solutions could save up to 60% of cybersecurity costs by 2035. In a country where cybercrime losses are among the highest per capita globally, this application of AI is considered especially pertinent.

Ben King, Managing Director, Google Singapore, commented on the report's publication: "Singapore is leading the charge in the AI era through its embrace of the technology. This momentum sets the stage for greater growth. The Economic Opportunity Report reveals significant opportunities for our nation to innovate and drive outsized impact, especially in critical areas like healthcare and cybersecurity. Equipping our local workforce with these advanced AI skills will undoubtedly also drive significant economic value. Given the pace of AI innovation, we are confident that this is not a distant dream, but a reality that will unfold in the matter of years, not decades."

Singapore faces demographic shifts, with its ageing population expected to increase the proportion of citizens over 65 years old threefold in coming decades. According to the report, AI could help offset labour shortages stemming from these changes by automating repetitive tasks and sustaining overall productivity. Projections indicate that this shift toward automation could spur wage growth above 8% and augment the capabilities of about 76% of local workers.

Singapore's workforce is already positioned to adopt AI due to high levels of digital literacy. The report notes that 58% of employees have independently incorporated AI tools into their daily tasks to improve productivity, and 82% of workers express interest in further AI-related training. However, only 27% reported that company leadership actively encourages AI use, suggesting that a more coordinated approach to training may be necessary to ensure widespread and equitable adoption.

AI's increased integration into healthcare is also highlighted in the report. Beyond reducing drug discovery timelines, AI tools may enable earlier detection of health conditions through data analysis from smart devices. Survey results indicate that 68% of Singaporeans are open to AI's involvement in medical diagnosis, provided that a human doctor is present to oversee procedures.

In the area of cybersecurity, Singapore's strong digital infrastructure stands to benefit from AI adoption. With cybercrime victims in Singapore reportedly losing the most per person globally, AI tools aimed at monitoring systems for hostile software and identifying social engineering threats like phishing could offer substantial cost savings and improved threat response.

Google has stated its role in supporting Singapore's AI ambitions through a suite of skilling initiatives. Programmes such as Skills Ignition SG, which incorporates AI modules into its year-long traineeship curriculum, seek to upskill the local workforce. Google Career Essentials offers self-paced online training, while the company's generative AI initiatives aim to foster innovation among startups.

In start-up development, Google Cloud's Generative AI Programme has supported companies such as TDCX in deploying AI solutions, and the Google for Startups Accelerator: AI First Singapore provides resources and mentorship to emerging businesses, including Transparently.ai. In healthcare, Google DeepMind's AlphaFold has been utilised in research on medical conditions such as Parkinson's Disease.