As countries adopt a fierce approach to artificial intelligence (AI), Singapore is taking a measured approach to avoid the scathing pitfalls associated with the technology.
Bloomberg reported that the Southeast Asian country is keen on applying the harsh lessons learned from its hasty approach to Web3 and digital currencies to AI. Sopnendu Mohanty, an executive at the Monetary Authority of Singapore (MAS), disclosed that the country’s foray into AI will be for the long-term, designed to ensure the safety of consumers.
“We want to play a long game in this space,” said Mohanty. “We want to ensure whatever AI we adopt or we promote, it stays for a long period of time. We have learned a lot of lessons in the whole DLT/digital currency space. If you rush yourself very fast, you may see bad actors coming very quickly.”
The central bank executive stated that despite the slow-and-steady approach toward AI, Singapore has received AI investments running into “double-digit billion dollars” since the start of the year. Mohanty added that several AI developers are vying for a spot in Singapore’s nascent AI ecosystem, warning that a proper regulatory framework is in the pipeline.
Thousands of Singaporeans are already leaning on generative AI products like OpenAI’s ChatGPT and Google’s (NASDAQ: GOOGL) Bard, with adoption metrics set to spike given the nation’s young and tech-savvy population.
At the moment, Singapore is licking its wounds from a botched embrace of digital currencies that saw it emerge as a global Web3 hub. During the peak of its powers, the country played host to leading digital currency service providers before a series of ill-fated implosions soured the plot for Singapore.
Terra, Zipmex, and Three Arrows Capital (3AC) collapse saw thousands of residents lose fortunes, forcing regulators to wade into the space. To ensure the safety of consumers, Singapore rolled out a new framework for stablecoins and a new directive for service providers to hold customers’ funds in “statutory trusts.”
The new regulations are designed to stifle speculative activities with digital currencies while focusing on productive uses for blockchain.
“While the segregation and custody requirements will minimise the risk of loss of customers’ assets, consumers may still face significant delays in recovering their assets in the event of insolvency of the service providers,” said MAS.
A flurry of AI use cases in Singapore
Mohanty disclosed that AI offers a range of benefits for key sectors of the Singaporean economy, specifically in the finance and manufacturing sectors. For the central bank official, integrating AI in these key sectors can improve efficiency and productivity and stifle money laundering and terrorism financing.
However, banks and other financial institutions have been warned to remain wary of the privacy and security risks associated with AI use in the financial sector. Other AI risks for Singaporean regulators include the spread of misinformation, fraud, impersonation, and job losses stemming from increased automation.
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