Artificial intelligence (AI) could nearly double Singapore's annual economic growth rate by 2035, according to a new research from Accenture.
Singapore is at the forefront to integrate innovation and technologies into the wider economy, ahead of the largest economies in the world such as the United States.
The boost in Singapore's labour productivity will be driven by innovative AI technologies enabling the workforce to be more efficient.
By adopting AI, Singapore would only require 13 years for its economy to double in size, while without AI, it will take the country 22 years.
"As Singapore advances its smart nation vision, the adoption of AI will propel economic growth and potentially serve as a powerful remedy for stagnant productivity and labour shortages," said Lee Joon Seong, managing director, ASEAN Accenture Analytics Lead. "The combinational effect of AI, cloud, sophisticated analytics, robotics and other emerging technologies is already starting to change how work is done by humans and machines, and how organisations interact with consumers in startling ways.
Increased labour productivity
In Singapore, AI will increase labour productivity by 41 percent by 2035, the highest amongst the developed economies.
The productivity increase significantly reduces the number of years required for the largest economies in the world to double in size.
In order to leverage AI to boost growth, Accenture recommends integrating human intelligence with machine intelligence so they can successfully co-exist in a two-way learning relationship.
Organisations should encourage AI-powered regulation update and create adaptive, self-improving laws.
"Artificial Intelligence heralds a dramatic potential for growth for both the Singapore economy and for humans," said Mark Purdy, managing director and chief economist, Accenture Research. "Our research strongly shows that AI can unleash remarkable benefits in Singapore and many countries, countering slow economic growth and lagging productivity."
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