‘No board can afford to be under-invested’ in AI: Josephine Teo at SID AI guide launch

[SINGAPORE] As artificial intelligence becomes a boardroom priority, directors in Singapore can now tap a new framework to help them oversee its adoption and governance.

The AI Guide for Boards in Singapore, launched on Friday (Jul 31) by the Singapore Institute of Directors (SID) at its inaugural SID Digital & Tech Forum, provides practical guidance to help boards navigate the opportunities and risks of AI.

“No board can afford to be under-invested in this domain (of AI),” said Minister for Digital Development and Information Josephine Teo, who delivered the keynote address at the forum. “It would be beneficial to
build up your depth of understanding.”

While Teo noted that Singapore is among the leading countries in AI investment, innovation and implementation, she cautioned that the gap between the top AI-performing countries and Singapore remains significant.

She added that there are many countries seeking to beat Singapore, thus increasing competition.

“We should take that as a compliment, challenge and encouragement,” noted Teo. “We need to continuously look at ways to better ourselves, and there are many good reasons as well as opportunities for us to do so.”

Teo also highlighted that AI adoption presents a different challenge from previous technologies, as many employees are already using AI tools independently, sometimes ahead of their organisations.

She said that companies should consider how to harness employees’ existing knowledge and experience with AI, and create an environment where individual productivity gains can be translated into broader workplace improvements.

“My only request is that you do so while empowering people, rather than replacing them,” Teo added.

“There is still so much we can do to unleash human potential and creativity, and it would be a loss to all of us if we believed that AI could simply take over everything humans do.”

Growing expectations

The AI Guide for Boards in Singapore is designed to bridge the gap between AI ambition and implementation at the board level. SID noted that even as Gartner projects worldwide AI spending to reach US$2.52 trillion in 2026, many organisations that have successfully developed AI proofs of concept continue to struggle to scale them across the enterprise.

Developed in partnership with OpenAI and Microsoft, the 116-page guide is supported by the Infocomm Media Development Authority (IMDA). Its primary objective is “to elevate the fiduciary literacy of board members, shifting AI oversight from a passive tech-committee topic to a core boardroom mandate”.

The launch comes as directors face growing expectations to oversee AI strategy, governance and risk, with AI governance rapidly becoming a fiduciary imperative.

“AI is no longer a technology issue; it is a board responsibility,” said Yeoh Oon Jin, chairman of SID. “Written specifically for directors, this guide provides practical frameworks and the critical questions boards need to oversee AI with confidence, balancing innovation and value creation with effective risk management and trust.”

The guide complements Singapore’s National AI Strategy 2.0 by translating national ambitions into practical boardroom actions.

It also aims to help directors leverage initiatives such as the IMDA Model Governance Frameworks to strengthen governance, accelerate responsible AI adoption across enterprises and advance Singapore’s aspiration to be a global hub for trusted AI.

The guide also noted that boards must strengthen their AI literacy. “At a minimum, directors should understand how AI is reshaping industries, operating models and competitive dynamics,” it said.

The guide therefore provides practical guidance on a range of strategic and operational issues. This includes integrating AI into corporate strategy, identifying high-value AI opportunities as well as managing regulatory, cybersecurity and ethical risks.

The SID Digital & Tech Forum also featured a discussion between OpenAI and Microsoft on governing the pace of technological change, followed by a panel on how boards can turn AI ambitions into execution.

Andy Brown, head of go-to-market for Asia-Pacific at OpenAI, said that organisations often struggle to demonstrate returns on AI investments because of a communication gap rather than a value-creation problem.

“There is a disconnect between leadership teams, the board and employees who are using and getting value from AI every day,” he noted.

As an example, Brown pointed to Singapore Airlines, which uses OpenAI’s models in its customer service application on the mobile app. 

Adding on, Jasmine Begum, general manager, corporate external and legal affairs at Microsoft Asean, said that the board’s role is not to choose the AI model but to establish the right governance framework.

“Different businesses use cases require different models… In some, you need a proprietary, regulated environment – and we need to consider the requirements of the business too,” she added.

Defining the outcomes

Speaking at a separate panel, Jimmy Ng – a member of Keppel’s board, and the risk and audit committee – said that organisations should first define the outcomes they want to achieve from using AI before deciding how to deploy it.

“Understand the drivers and the levers (of AI outcomes) first. Then, we can talk about governance, accountability and KPIs (key performance indicators),” he explained.

Fellow panellist Dr David Hardoon, former global head of AI enablement at Standard Chartered, noted that while AI technologies – including agentic AI – are evolving rapidly, the core principles of governance remain unchanged.

“The existing governance framework committees don’t need to be fundamentally replaced,” he said. “They need to be upgraded in order to oversee AI.”