Artificial intelligence (AI) in Singapore is likely to continue to grow as OpenAI, which developed the GenerativeAI (GenAI) solution called ChatGPT, is opening an office in the city-state later in the year. According to Statista Research, the country’s AI market is on target to reach USD 1.05 billion in 2024 and grow annually by 28.10% to USD 4.64 billion by 2030. The largest AI market size worldwide remains the United States, with an expected revenue of USD 50.16 billion in 2024.

The AI trends Singapore is witnessing have inspired OpenAI to establish a presence in the country to capitalise on the growing demand for artificial intelligence development in the region. Singaporeans are some of the highest ChatGPT users per capita worldwide, and the number of active weekly users has doubled since the year began. The company is establishing a hub in the city-state, enabling its team to support customers and partners regionally while strengthening relationships with governments, businesses, and institutions across the Asia-Pacific (APAC) region.

We speak to Chan Chee Kong from GlobalTix about AI changing the ticketing and tourism industry in Southeast Asia

In a press release published on the Singapore Economic Development Board (EDB) page, OpenAI CEO Sam Altman said the company aims to expand in APAC. He also mentioned that they are excited to partner with the government since Singapore has a rich history of leadership in technology and AI. The Business Times understands there are plans to hire five to ten employees and rent office space.

The company has already raised USD 6.6 billion from investors like Thrive Capital, SoftBank, Microsoft, Nvidia, and others. Reuters reported that the leadership told investors the business is seeking profitability after suffering billions in losses and is developing AI systems that could surpass human intelligence. Mr Oliver Jay will lead its regional operations, be based in Singapore, and be the managing director of international operations.

What to expect from OpenAI’s Singapore move

Expectations are that OpenAI’s move to Singapore will boost the AI ecosystem in the country in the following ways:

Highlight the growing AI ecosystem: EDB managing director Jacqueline Poh said OpenAI’s decision shows Singapore’s budding AI ecosystem, fueled by government support, investments, and collaboration between AI innovators and enterprises. The move will also attract other leading AI companies to the region.

Improving accessibility: OpenAI is partnering with AI Singapore to make advanced artificial intelligence more widely accessible across the Association of Southeast Asian Nations (ASEAN). It will provide up to USD 1 million to ensure AI models are localised to suit Southeast Asia’s diverse languages and cultures.

Innovative growth due to proximity: Having a regional presence means it will be closer to companies like Grab, which uses OpenAI’s advanced AI products to innovate solutions, tools, and features for their customers.

Boosting the developer community: ASEAN has many innovative developers and startup founders who are trying to make an impact in the AI sector. OpenAI will be hosting its first Developer Day in Singapore on 21 November 2024, bringing together the region’s community of developers and startups to engage each other and grow the artificial intelligence industry.

Outlook for AI in Singapore

The future of AI in Singapore looks strong despite some challenges. As AI becomes part of regular life, 42% of their respondents said there should be education and continuous upskilling to address the general lack of understanding of AI and how to use it effectively. AI can revolutionise education by simplifying simple tasks, personalising learning, and more.

Education Minister Chan Chun Sing highlighted the government’s plans to grow the nation’s proficiency in AI. Speaking at a panel discussion at The Business Times Asia Future Summit 2024, he said, “We want to be seen as a trusted and neutral place where people can bring the best of technology together to collaborate and not just to compete.”

Another significant development was the Budget 2024 speech by Minister for Finance, Mr Lawrence Wong. He identified AI as a “critical emerging technology” and said it can transform industries and enhance process productivity. He announced a National AI Strategy 2.0 supported by over USD 1 billion in the next five years. The funds will ensure industry growth, talent acquisition, and access to advanced chips for AI development and deployment.

The AI trends Singapore has shown, such as using ChatGPT to find answers for environmental protection, means the city-state is well-poised for further adoption, innovation, and integration of AI to benefit Singaporeans. Localising AI development will ensure people can use it seamlessly, invest in the technology, and harness AI to improve their communities. 

Overall, the decision for OpenAI to come to the country confirms the nation as a regional hub for artificial intelligence development and investment, which will benefit the AI ecosystem significantly.