Singapore overtakes US in AI investments, leaps ahead in global tech race

SINGAPORE: The little red dot has emerged as a frontrunner in the global race for dominance in Artificial Intelligence (AI) investments, surpassing even the United States by a notable margin.

According to a recent report by AIRPRM, drawing on data from the Organisation for Economic Co-operation and Development (OECD) and the World Bank, Singapore has invested a substantial S$9.4 billion (US$7 billion) in AI over the past five years, representing more than 15 per cent of its relative wealth per thousand dollars of GDP.

In 2023 alone, Singapore made an impressive investment of S$2.5 billion (US$1.9 billion) in AI, solidifying its commitment to becoming a global AI powerhouse. Comparatively, the United States, a traditional leader in technological advancements, invested approximately 12.9 per cent of its GDP in AI infrastructure, lagging behind Singapore by a significant margin.

Singapore’s AI investment rate, at 116.3 per cent, outstrips that of the United States by around 16 per cent per billion dollars of GDP.

The global AI landscape also highlights the substantial contribution of the Asia Pacific region, which accounts for 23.93 per cent of the total AI market size. Japan and South Korea, in particular, play pivotal roles, with valuations of S$27.1 billion (US$20.2 billion) and S$21.85 billion (US$16.3 billion), respectively, as of 2022.

Interestingly, while Asian countries, notably South Korea and China, exhibit higher subjective knowledge of AI, Japan appears to lag behind. According to a comprehensive study by KPMG, only a quarter (25 per cent) of Japan’s population possesses a high or moderate understanding of AI, the lowest reported figure among the countries surveyed.

China stands out as a beacon of AI enthusiasm, with a remarkable 96 per cent of its population expressing a strong desire for more information on AI. Following closely is Israel, where 94 per cent of the population shares a similar sentiment.

In contrast, Japan falls behind with just over half (55 per cent) of its population expressing a desire for more AI knowledge.