SMEs see 52% cost savings from using AI; IMDA to offer more tailored support

Local businesses hoping to digitalise and adopt artificial intelligence (AI) can find tailored solutions with support from the Infocomm Media Development Authority (IMDA) and partnerships with industry stakeholders.

Speaking at the inaugural SMEs Go Digital Day held at the Suntec Singapore Convention & Exhibition Centre on Tuesday (Oct 7), Senior Minister of State for Digital Development and Information, Tan Kiat How said that "SMEs can punch above their weight" with the effective use of AI.

"We cannot stand still. Technology developments, especially AI is advancing rapidly. Customer expectations are increasing, demanding quicker responses and more personalised services," he said.

According to the Singapore Digital Economy (SGDE) report by the IMDA, the number of local SMEs adopting AI has tripled to around 15 per cent between 2023 and 2024 — resulting in cost savings of 52 per cent on average.

Go Digital Advisor

At the event, Tan launched Go Digital Advisor, a new tool in the IMDA's Chief Technology Officer-as-a-Service (CTO-as-a-Service).

A 24/7 one-stop platform accessible to all businesses, the tool allows businesses to find personalised digital solutions based on their unique needs.

SMEs can identify specific business pain points under broad categories — Sales & Marketing, Customer Service, Operations, Human Resources, Sustainability, and Cybersecurity — and receive recommendations for pre-approved, market-proven digital solutions, with grant support from IMDA.

"While the AI adoption trend is encouraging, I would like to see more enterprises to come onboard and not be left behind," Tan said, adding that the tool aims to make AI adoption and digitalisation more intuitive for SMEs, without the need for large or complex IT systems.

Prior to the new launch, more than 400,000 users accessed the Industry Digital Plans and sought market-proven solutions to boost productivity on the used the CTO-as-a-Service in 2024, according to IMDA.

Strengthening partnerships to uplift enterprises

IMDA has also partnered with industry stakeholders to collectively scale impact and boost the digital capabilities of SMEs, said Tan, who announced new partnerships with Singtel and the Singapore Chinese Chamber of Commerce and Industry (SCCCI).

The partnerships come under Singapore’s Digital Enterprise Blueprint (DEB) that was launched in May 2024.

Singtel, in partnership with Enterprise Singapore and IMDA, will launch the Singtel Cyber Protect Programme to help SMEs safeguard their businesses against cyber threats.

Under the programme, Singtel will offer free mobile protection and broadband security to SMEs to protect their business office networks from cyberattacks. 

SCCCI's partnership with IMDA will focus on helping SMEs leverage AI to grow their businesses.

The SCCCI AI Experience for SME Programme will strengthen SMEs' AI adoption through hands-on workshops with IMDA's pre-approved AI and Generative AI (GenAI) tools.

Singtel and SCCCI will join the 11 existing partners, Alibaba Cloud, Amazon Web Services, DBS Bank, Google, Microsoft, Prudential Singapore, Salesforce, SGTech, Singapore Business Federation, Singapore Computer Society and ST Engineering, who pledged their support for DEB in May 2025.

SMEs can register their interest in Singtel and SCCCI's programmes on CTO-as-a-Service from Nov 1, 2025 and January 2026 respectively.

To date, more than 20,000 enterprises have benefited from these partnership initiatives and programmes, said Tan.

Speaking to the media, Tan added: "At the end of day, technology will disrupt sectors, but it also has a lot of opportunities for us to transform. There are going to be winners and losers in the world of AI. We are committed to help Singapore companies and workers to be on the right side of that divide."

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dana.leong@asiaone.com