Choose value over origin: Josephine Teo calls for smart choices in Singapore's AI scale-up


Choosing artificial intelligence (AI) technology based on what it can do rather than where it comes from is critical for nations navigating AI sovereignty, Singapore's Minister for Digital Development and Information Josephine Teo said at the Asia Economic Summit on Wednesday (June 17)
Speaking at a panel at the event, Teo reframed AI sovereignty as the autonomy to make smart choices that deliver public good
She explained that making smart choices involves evaluating AI products on performance, affordability, and security rather than their country of origin
"It should matter more how the overall value is achieved than whether this comes from country A or country B," she said.
"The choice is not so much between country A and country B. The choice is really whether, on balance, you are better able to achieve the combination of performance and affordability, security and resilience."
Teo noted that a healthy digital ecosystem requires a diverse mix of suppliers to prevent over-dependence on a single provider
Similarly for businesses, this framework means matching different degrees of security based on the sensitivity of specific datasets, as well as ensuring companies maintain the resilience to recover or switch vendors quickly during disruptions
Addressing cross-border data flows, Teo compared the Asean Digital Economy Framework Agreement (Defa) to a civil aviation air services agreement
While Defa establishes top-line cooperation, the underlying technical mechanisms and interoperability rules for data exchange must still be meticulously harmonised
At present, the existing Asean data management framework enables disparate data laws to connect via pre-agreed contractual clauses
"The next steps are to really flesh out all these detailed workings, so that when the equivalent of an aircraft flies from one airport to another, it doesn't encounter the problem of incompatible systems," she said. "This is the hard work that goes on."
The rapid scale-up of AI presents bottlenecks, particularly regarding the power to run data centres and water needed to keep them cool.
Teo highlighted the ongoing discussions around the Asean power grid as a potential solution to support regional energy security and long-term digital infrastructure needs
Beyond infrastructure, Teo said that building public trust remains crucial as AI directly impacts millions of consumers daily without standardised testing
Drawing a parallel to the building the summit was held in, she explained that people enter the structure trusting it would be safe because checks have been conducted to ensure it is so.
"But today AI is reaching the hands, the heads, and the hearts of millions of people, and we are not really sure whether it has been properly tested," she added.
"So the question for me is: what efforts are we making to ensure that this technology can truly be trusted?"
To build consumer trust, the Government is engaging industry developers to co-create a framework for AI application "nutrition labels"
Similar to ingredient lists on bread or dosage instructions on medication, these labels would declare an application's intended use and limitations without compromising proprietary information
The Government plans to gather feedback and share the utility of this framework with Asean neighbors
"These attempts are baby steps, but ultimately, when ready, it will likely start as a voluntary framework," Teo said. "We can then assess whether it is useful and effective, before we consider next steps."
Teo also highlighted a known challenge with technology, where frontier companies stand to benefit most from technological waves.
"They are quick to adopt, make full use of what the technology can offer, and then become even more competitive.
"They grow in size and scale, then disrupt other companies' businesses, and you have a long tail of companies, generally the smaller ones, who can't keep up," she said. "That is a worry with AI too."
Countering fears that AI will only benefit frontier corporations, Teo pointed to the emergence of "small AI" — a term coined by World Bank president Ajay Banga.
She explained that "small AI" can be used to uplift smaller enterprises and underserved communities
Referring to a showcase she attended, she recalled how various youth had showed her apps they created that utilise AI.
However, these apps use AI that is very lean and does not require a big server to run, she said.
"That's what I think AI potentially can do that previous waves of technology could not. You don't need very heavy investments to benefit small communities and their very bespoke needs."
This article was produced with the assistance of AI and checked by our editors.
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