The artificial intelligence (AI) technology is set to drive Singapore's economic growth, boosting the expansion rate by nearly two times by 2035.
According to a new study by Accenture Research, Singapore is at the forefront of integrating innovation and technologies into the wider economy. The city-state is even ahead of the largest economies in the globe including the United States, Germany, United Kingdom and Japan.
ASEAN Accenture Analytics Lead Managing Director Lee Joon Seong said AI will be able to significantly advance the labour productivity in Singapore, enabling the workforce to be efficient in using their time.
The research showed that AI will be able to promote a 41 percent growth labour productivity by the said year, the highest expansion amongst the developed economies.
With AI, Lee said Singapore would only require 13 years to double its economic size, instead of the average period of 22 years.
"As Singapore advances its smart nation vision, the adoption of AI will propel economic growth and potentially serve as a powerful remedy for stagnant productivity and labour shortages," he said in a statement.
He furthered, "The combinational effect of AI, cloud, sophisticated analytics, robotics and other emerging technologies is already starting to change how work is done by humans and machines, and how organisations interact with consumers in startling ways."
The Accenture study noted that Singapore could potentially increase its annual growth rate from 3.2 percent to 5.4 percent by 2035, thanks to AI. This translates to an additional US$215 billion in gross value added (GVA). Looking at other countries, this is way ahead as AI could add only boost United States' annual growth to 4.6% and United Kingdom's expansion to 3.9% in 2035.
With this forecast, Accenture Research Managing Director and Chief Economist Mark Purdy said firms should be able to embrace emerging technologies by encouraging AI-powered regulation and advocating a code of ethics for AI.
He also stated that the policymakers should highlight how AI can result in tangible benefits and pre-emptively address any perceived downsides of AI, helping groups disproportionately affected by the changes of employment and incomes.
"Artificial Intelligence heralds a dramatic potential for growth for both the Singapore economy and for humans. Our research strongly shows that AI can unleash remarkable benefits in Singapore and many countries, countering slow economic growth and lagging productivity," Purdy said in a statement.
