Which sectors will benefit the most from AI?

On the other hand, only 9% of occupations are considered at risk of displacement.

Artificial intelligence (AI) could contribute more than $53b to Singapore’s economy by saving time and improving labour productivity, according to a new report by consultancy Public First commissioned by Google. 

Singapore’s manufacturing and finance sectors are expected to see the largest AI-related gains, with estimated boosts of $27b and $8.4b, respectively. 

In the health sector, AI tools are expected to reduce drug discovery time by over 40%, which could significantly cut pharmaceutical development costs.

The findings also suggest AI can play a central role in maintaining Singapore’s economic edge amidst demographic challenges and technological shifts.

The report estimates that AI could save workers 21 working days a year by automating administrative tasks, with potential wage increases of over 8% due to a shift towards higher-value work. 

Despite fears that AI could lead to job losses, the study found that 76% of workers are likely to be augmented, not replaced, by AI tools. Only 9% of occupations are considered at risk of displacement.

Singapore is one of the fastest adopters of AI in the region, with a strong digital infrastructure and policy support. 

However, there are still gaps in adoption across different demographic groups. 

A 10% gap in regular AI usage between men and women and a 15% gap between graduates and non-graduates suggests the need for targeted upskilling. 

In the healthcare sector, the report noted that AI is already being used to support diagnostics, including by the National University Hospital, which uses AI to speed up MRI scan interpretations. 

The broader use of AI is projected to help offset more than half of the labour shortage expected from Singapore’s ageing population.

By around 2085, the median age is expected to rise to 57, intensifying pressure on healthcare services.

Singapore’s AI efforts also aim to enhance regional trade. AI tools could reduce non-tariff barriers by handling tasks such as translation and cross-border compliance, potentially lifting exports by more than $380b. 

Despite optimism, the report highlights public concerns over misinformation, data privacy, and cybersecurity risks. 

Around 89% of respondents agreed that AI development must be responsible. The report suggests that AI could help prevent over 60% of cybersecurity threat costs if deployed effectively.

Google and the Singapore government are supporting AI skills development through training programmes such as the Google Career Certificates and Skills Ignition SG. These initiatives have trained tens of thousands of workers, with modules now incorporating AI-focused content.

The report surveyed over 1,000 Singaporean adults, with fieldwork carried out from 14 February to 6 March 2025.