Why Singapore is urging financial firms to scale up AI for better jobs

Singapore’s government is pushing financial firms to scale up artificial intelligence (AI) to generate better jobs and train workers for higher-value roles, rather than using it primarily for cost-cutting. Deputy Prime Minister Gan Kim Yong made the announcement amid growing AI adoption in the sector, including Standard Chartered’s decision to reduce its workforce by over 7,000 employees within four years as part of its AI-driven efficiency strategy. Gan emphasized that delaying AI adoption would weaken Singapore’s competitiveness and ultimately hurt workers more than help. He stressed the need to transition AI from experimental phases into widespread company-wide implementation, ensuring it creates jobs and enhances safety and security in its development and use. According to a DBS report, Singapore ranks third globally among 15 AI financial hubs, trailing only New York and San Francisco. The city-state has positioned itself as a leader in integrating AI capabilities with institutional trade, aiming to maintain its status as a global financial center. Gan also highlighted the potential of AI to amplify the impact of Singapore’s limited workforce, allowing employees to perform more tasks than before. He noted that companies must prioritize both employees and customers, as human oversight remains critical in AI-driven processes. The push for AI adoption comes as financial institutions seek to balance profitability with workforce sustainability, ensuring technology enhances rather than replaces jobs in the long term.