Measuring Productivity Improvements from Government-supported AI Capability Investments and Key Findings Across Sectors

Ms He Ting Ru asked the Minister for Trade and Industry (Energy and Industry) (a) how does the Ministry measure productivity improvements for businesses attributable to Government-supported artificial intelligence capability investments; and (b) what are the key findings from such measurements, including a breakdown across sectors.

Dr Tan See Leng: For businesses that receive Government support for their artificial intelligence (AI) investments, we measure improvements in process efficiency and/or labour productivity. The specific indicators would depend on the project concerned. As the support measures are relatively new, there is insufficient data to assess their impact at this point.

The Government will also track the rate of AI adoption among businesses as well as sectoral productivity trends. Nonetheless, it would not be possible to isolate the impact of AI as sectoral productivity outcomes are influenced by a combination of factors including demand conditions, workforce skills, management practices and wider digital transformation efforts.