How AI is Shaping Singapore’s Regulated Sectors

AI is transforming industries across the globe, and Singapore is no exception. With its strategic push to become a global AI hub, the city-state is leading the charge in responsible innovation — especially in sectors where compliance, data privacy, and public trust are paramount.

From legal departments to educational institutions, regulated sectors in Singapore are exploring AI to enhance services, streamline operations, and unlock new value. But with opportunity comes responsibility. Deploying AI in these sectors requires a careful balance between innovation and governance.

To accelerate AI adoption, the Singapore government has committed at least S$1 billion over five years to scale AI infrastructure, talent, and industry capabilities. This includes tripling the number of AI practitioners to 15,000 and establishing Centres of Excellence to support innovation. Under the 2025 budget, up to S$150 million will be set aside for the Enterprise Compute Initiative (ECI) to support Singapore-based companies in their AI transformation efforts.

In this blog, we explore how Singapore’s AI governance model supports innovation and highlight practical opportunities across key sectors.

Singapore’s Approach to AI Governance

Singapore is widely regarded as one of the most forward-thinking and comprehensive leaders in AI governance. In fact, the Global AI Readiness Index from Salesforce ranks Singapore second in overall AI readiness.

Rather than stifling innovation with rigid regulations, the Singapore government has adopted pragmatic, risk-based frameworks that encourage responsible experimentation while safeguarding public interest. At the core of this strategy is a multi-agency governance model that ensures sector-specific oversight and national alignment.

Key players include:

Infocomm Media Development Authority (IMDA): Leads AI policy development and innovation enablement.
Personal Data Protection Commission (PDPC): Oversees data protection and privacy regulations.
Monetary Authority of Singapore (MAS): Regulates AI use in financial services.
Ministry of Health (MOH): Provides guidance on AI in healthcare.
Centre for AI and Data Governance (CAIDG): A key national research and policy hub that advances responsible AI through collaboration across government, academia, and industry.

These agencies work together to ensure that AI systems deployed in Singapore are safe, transparent, fair, and accountable. Several key frameworks and initiatives support this vision:

AI Verify Toolkit

Developed by IMDA, AI Verify is Singapore’s flagship AI governance testing framework. It provides organisations with tools to assess and validate their AI systems against ethical and technical benchmarks. AI Verify was aligned with the United States National Institute of Standards and Technology (NIST) AI Risk Management Framework, reinforcing its global relevance.

Model AI Governance Framework

This foundational document outlines sector-agnostic principles for responsible AI development. It covers areas such as transparency, explainability, human involvement, and algorithmic accountability. The framework is designed to be adaptable, allowing organisations to tailor its principles to their specific use cases and risk profiles.

Personal Data Protection Act (PDPA)

The PDPA is Singapore’s primary data protection law, governing the collection, use, disclosure, and care of personal data. It plays a critical role in AI governance by ensuring that data used to train and operate AI systems is handled ethically and securely.

Implementation and Self-Assessment Guide for Organisations (ISAGO)

ISAGO translates high-level ethical principles into practical, actionable steps for businesses. It helps organisations implement responsible AI practices by providing checklists, templates, and guidance on risk assessment, data governance, and stakeholder engagement.

Project Moonshot

Launched in 2024, Project Moonshot is a testing toolkit for large language models (LLMs). It addresses emerging risks such as misinformation, bias, and prompt injection attacks, helping organisations deploy generative AI safely and responsibly.

National AI Strategy 2.0

Singapore’s updated national roadmap outlines the country’s ambition to become a global AI hub. It focuses on five key enablers: talent development, data architecture, compute infrastructure, industry transformation, and international collaboration.

Together, these frameworks and initiatives form a cohesive, future-ready governance ecosystem. They empower organisations to innovate with confidence, knowing that their AI systems are aligned with both local regulations and international best practices.

AI Opportunities in Regulated Industries

Singapore’s regulated industries are uniquely positioned to benefit from AI — not just to improve efficiency, but to reimagine how services are delivered. Below are key sectors where AI is already making an impact:

Healthcare

Healthcare providers can leverage AI to enhance clinical documentation, improve diagnostic accuracy, and enhance patient engagement. For example, AI-powered tools can assist doctors in analysing medical images, automating administrative tasks, and offering personalised health insights to patients.