Businesses that successfully apply artificial intelligence (AI) could create up to US$215 billion in gross value added (GVA) in Singapore by 2035. Business services, financial services, and manufacturing look set to benefit the most out of the 11 industries studied in Singapore. To capitalise on the opportunity, the report Artificial Intelligence: Driving Future Growth in Singapore identifies eight key strategies for successfully implementing AI that focus on adopting a human-centric approach and taking bold and responsible steps to applying the technology within businesses and organisations.

1. ARTIFICIAL
INTELLIGENCE:
DRIVING
FUTURE
GROWTH IN
SINGAPORE
DECEMBER 2017

2. 2
SINGAPORE FACES KEY ECONOMIC CHALLENGES
SLOWING GROWTH FALLING CAPITAL
INVESTMENT
DECELERATING
PRODUCTIVITY
SOFT WORKFORCE
GROWTH
Singapore’s annual
GDP growth was 1% in
2016 from 4% in 2012
Fixed asset
investment in 2016
was less than 60% of
that in 2012
Negative multifactor
productivity growth
since 2012
Projected labor force
growth is slow with a
CAGR of 0.5%
through 2035
Source: Singapore Department of Statistics, International Labor Organization
Copyright © 2017 Accenture All rights reserved.

3. 3
POTENTIAL BENEFITS OF AI IN SINGAPORE
AI AS A NEW FACTOR OF PRODUCTION CAN
REINVIGORATE THE SINGAPORE ECONOMY AND
BOOST INDUSTRY PROFITS
AI could increase
Singapore’s annual growth
rate from 3.2% to 5.4% by
2035, translating to an
additional US$ 215 billion in
gross value added
Singapore will only need 13
years for its economy to
double in size with AI. While
without AI, it will take the
country 22 years
AI can increase labor
productivity by 41% by 2035,
the highest among
developed economies
Note: Gross value added (GVA) is a close approximation of gross domestic product
Copyright © 2017 Accenture All rights reserved.

4. 4
THREE ACCELERATORS WILL BOOST GROWTH FOR COMPANIES
AI ESTABLISHES NEW RELATIONSHIPS BETWEEN
PEOPLE AND MACHINES, CREATING NEW FACTORS OF
PRODUCTIVITY AND GROWTH
INTELLIGENT
AUTOMATION
• Automates complex
physical world tasks that
require adaptability and
agility
• Ability to self-learn and
improve, enabled by
repeatability at scale
LABOR & CAPITAL
AUGMENTATION
• Enables humans to focus
on parts of their role that
add the most value
• Improves capital
efficiency – a crucial
factor in industries where
it represents a large sunk
cost
INNOVATION
DIFFUSION
• Propels innovations as AI
diffuses through the
economy in the form of
increased total factor
productivity
• Opens new business
models and opportunities
Copyright © 2017 Accenture All rights reserved.

5. 5
Singapore’s projected growth with AI as a new
factor of production by 2035 (in US$ billion)
BY 2035, AI HAS THE POTENTIAL TO BOOST
SINGAPORE’S OUTPUT BY CLOSE TO US$ 215 BILLION
• By 2035, Accenture estimates Singapore will
achieve output of close to US$ 744 billion in
the projected state with AI as a new factor of
production
• Labor and capital augmentation will account
for over 60% of the AI uplift in steady state
Source: Accenture and Frontier Economics
Copyright © 2017 Accenture All rights reserved.

6. Business services, financial
services, and manufacturing look set
to benefit the most from AI out of 11
industries in Singapore (in US$
billion)
6
AI BRINGS UNPRECEDENTED GROWTH
OPPORTUNITIES, THOUGH ITS IMPACT VARIES
ACROSS INDUSTRIES
Copyright © 2017 Accenture All rights reserved.
*Business services include accounting, consulting, legal, and real estate
Other services include arts and entertainment
Source: Accenture

7. 7
Singapore’s business services* sector
projected growth with AI in 2035 (in US$
billion)
IN SINGAPORE, AI WILL UNLEASH THE LARGEST
GROWTH IN BUSINESS SERVICES
• Business Services will benefit the most from AI in
Singapore, covering a wide range of activities from
real estate to accounting and legal
• AI-powered tools can help enhance productivity with
document mining, pattern recognition for fraud
detection, information extraction and analysis, thus
transforming or innovating the ways to generate
insights
161.1
114.8 114.8
46.3
Projected growth without AI Projected growth with AI as new
factor of production
LawGeex: AI-enabled legal services
• Developed an AI engine to automatically review legal
contracts and highlight any issues based on a
business’s legal policies, thus ensuring consistency
• Manages contract approvals and escalation, thus
getting the right tasks to the right people
automatically*Business services include accounting, consulting, legal, and real estate
Source: Accenture
Copyright © 2017 Accenture All rights reserved.

8. 8
Singapore’s finance & insurance sector projected
growth with AI in 2035 (in US$ billion)
IN FINANCIAL SERVICES, AI IS BEING APPLIED TO
ENHANCE CUSTOMER EXPERIENCE AND DRIVE
EFFICIENCIES
• Several AI-related drivers are expected to produce
industry growth, which include improved customer
experiences, greater operations efficiency, stronger
capacity for risk mitigation, and business generation
157.6
111.8 111.8
45.8
Projected growth without AI Projected growth with AI as new
factor of production
Ping An: AI used across financial services
• Uses facial recognition to resolve issues of verifying
borrowers, thus enabling the fastest lending platform in
China
• Enables quick collection of annuity payments with a
platform including facial recognition, analytics and digital
signatures
• Launched “AI Smart Stock Investment” to offer
recommendations on asset allocation
Source: Accenture
Copyright © 2017 Accenture All rights reserved.

9. 9
Singapore’s manufacturing sector projected
growth with AI in 2035 (in US$ billion)
WITHIN MANUFACTURING, AI CAN ENHANCE HUMAN
LABOR AND HELP REALIZE THE FULL POTENTIAL OF
EXISTING MACHINERY
101.1
• Manufacturing’s dependence on heavy machinery
primes the industry for the application of AI
technologies
• Not only will human labor become more productive,
but AI will also lead to the realization of the full
potential of existing machinery on the factory floor
71.3 71.3
29.8
Projected growth without AI Projected growth with AI as new
factor of production
FANUC: intelligent manufacturing
• Built a zero-downtime factory enabled by an
intelligent platform to predict potential equipment
failure
• Predictive maintenance helped clients saved up to
$70 million in “saved” downtime
Source: Accenture
Copyright © 2017 Accenture All rights reserved.

10. 10
USING AI TO DRIVE COMPETITIVENESS REQUIRES
CONSIDERING QUESTIONS ACROSS THREE KEY AREAS
GROWTH & CUSTOMERS SUSTAINABILITY &
TRUST
PROFITABILITY
• How can AI be used to better
understand customers and deliver
superior customer outcomes?
• What new AI-enabled products and
services can you bring to the market?
• How can AI be used to cut new
ground and create new business
models?
• In what ways can you innovate and
drive potential competitive
advantage with AI?
• How can AI automation enable
cost and productivity savings in
your organization?
• How will you fund the AI
initiatives?
• What new financial metrics will
be needed to properly assess
the return on AI?
• What AI guidelines and code of
ethics need to be put in place?
• What governance model is needed
to determine which tasks and
decisions will be made by
machines? What types of activities
should not be relinquished to AI?
• How will you optimize your
workforce requirements to
incorporate AI workers?
Copyright © 2017 Accenture All rights reserved.

11. 11
AUTHORS
Alison Kennedy
Managing Director, Accenture Strategy,
ASEAN
alison.kennedy@accenture.com
Arika Allen
Senior Manager, Accenture Strategy,
ASEAN
arika.m.allen@accenture.com
Xia Qi
Analyst, Accenture Strategy,
ASEAN
qi.xia@accenture.com
Copyright © 2017 Accenture All rights reserved.
To access Artificial Intelligence: Driving Future Growth in Singapore,
visit www.accenture.com/aiboostsprofitsSG