Singapore has emerged as a significant global AI hub, securing third place in the 2024 Global AI Index by Tortoise Media, trailing behind only the US and China. More remarkably, when measured by AI intensity relative to population and economy sizes, Singapore outperforms, demonstrating exceptional efficiency in leveraging its resources for AI development.
Leading Position Against Other Tech Hubs
Having long established itself as a digital hub in the region, Singapore has meticulously cultivated its standing as a formidable contender within the global AI landscape in recent years. This transformation has been achieved through deliberate and strategic policy formulation, substantial investments from both public and private sectors, and a concerted national endeavour to foster an ecosystem that is conducive to AI innovation and widespread adoption across industries.
Through these coordinated efforts, Singapore has successfully transformed itself into a major AI hub, not only within the Asian region but also on the global stage, competing directly with the world’s leading technological powers.
According to the 2024 Global AI Index published by Tortoise Media, which evaluated 83 countries’ AI capacity based on 122 different indicators grouped into three key pillars of analysis (implementation, innovation, and investment), Singapore secured third place with a score of 32.33.
This achievement places Singapore just behind the two major superpowers: the US, which claimed the top position with a score of 100.0, and China, which secured second place with a score of 53.88. This ranking positions Singapore ahead of other major developed economies and established tech hubs.
2024 Global AI Index (Country Ranking)
Source: Tortoise Media, July 2025
Beyond comparing countries’ AI capacity, the Index also examined performance through relative measures (termed “intensity”). This intensity metric provides a more nuanced understanding by measuring a country’s AI capacity relative to the sizes of its population and economy, offering insights into efficiency and strategic focus rather than merely scale. In this critical dimension, Singapore ranked the highest.
Singapore also outpaced other small nations and specialised hubs with comparable economic and population scales, such as Switzerland (known for its advanced research capabilities).
2024 Global AI Index (Intensity vs. Scale)
Source: Tortoise Media, July 2025
Singapore’s AI intensity and overall capacity are underpinned by three critical pillars that form the foundation of its success:
- World-class infrastructure that provides the essential technological backbone necessary for AI development and deployment, featuring advanced telecommunications networks, robust data centers, and sophisticated computing capabilities that enable seamless AI operations.
- The country’s emphasis on talent quality creates a highly skilled workforce capable of driving AI innovation. This is supported by strategic educational initiatives, international talent attraction programs, and continuous professional development in emerging technologies.
- Substantial research and development capability, fostered through strategic partnerships between academic institutions, government agencies, and private sector entities, helps establish Singapore as a center of excellence for AI research and practical application development.
2024 Global AI Index (Country Ranking Table)
Source: Tortoise Media, July 2025
AI Contribution to Singapore’s Economy and GDP
According to the 2024 Singapore Digital Economy Report by Infocomm Media Development Authority, the nation’s digital economy contributed 17.7% of its GDP in 2023. This means that 1 out of every 6 dollars was generated by the digital economy in Singapore, underscoring the transformative impact of digital technologies across all sectors of the economy, with AI serving as a critical catalyst within this broader digital ecosystem.
The nation’s digital economy, including AI, contributed 17.7% of GDP in 2023, with significant growth potential ahead. Morgan Stanley forecasted that AI adoption could help Singapore sustain 3% GDP growth in the long run despite demographic challenges, as AI becomes a critical tool to improve efficiency and productivity. Google also predicted in its 2024 Economic Impact Report that AI-powered solutions, if fully harnessed, could provide up to S$198.3 billion of economic benefits to Singapore in 2030 (equivalent to almost 30% of its 2023 GDP).
According to the report, consumer, retail, and hospitality industries were expected to benefit the most from adopting AI-powered solutions, followed by the manufacturing sector and mobility.
Potential Annual Economic Benefits from AI-enabled Technologies (% 2030)
Source: 2024 Economic Impact Report by Access Partnership and Google, July 2025
AI Investment and Funding Landscape in Singapore
Investments in Singapore’s burgeoning AI sector are characterised by a sophisticated blend of venture capital (VC), corporate venture capital (CVC), and substantial, strategically deployed government investments. It was reported that the country attracted around US$2 billion in AI sector investments in 2023 alone. The private funding reached US$413 million across 78 deals in 2024, with 86% directed toward early-stage companies.
This multi-faceted funding landscape is instrumental in ensuring robust and sustained support for AI innovation in Singapore, across all stages of development, from nascent startups to mature enterprises.
Venture capital has traditionally played a significant role in funding and incubating deep tech startups that look to develop cutting-edge technologies, such as AI. Being a venture funding hub of the region, where many global VC investment firms set up their regional headquarters, AI startups and companies in Singapore benefit from much easier access to funding, especially compared to other locations in the region.
Sector Adoption and Applications
Key examples of AI adoption and use cases can be easily found in Singapore’s financial services (e.g., AI for fraud detection), healthcare (e.g., AI for drug discovery), and manufacturing sectors (e.g., AI for predictive maintenance). Government services and smart city initiatives further demonstrate comprehensive AI integration across the economy.
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