Asia Could Win the Next AI Race Without the Biggest Models: DBS Report

The report, "Intentional AI," argues that competitive advantage in AI will increasingly stem from an organization's ability to address specific problems and translate AI capabilities into practical outcomes. This perspective suggests that the next phase of AI will prioritize real-world applications, shifting focus from the initial emphasis on technological capabilities and model development.

Asia's established manufacturing base, physical infrastructure, and experience in technology deployment are presented as potential strengths for this application-focused AI phase. The region's lead in industrial robotics, accounting for 74% of global installations in 2024 despite receiving only 5.7% of AI venture capital in 2025, is cited as an advantage as AI moves towards performing actions rather than just predictions.

DBS Research identifies significant regional challenges, such as ageing populations, healthcare access, climate resilience, and financial inclusion, as opportunities for applied AI. The report suggests that the value of AI in these areas is realized when it leads to measurable improvements, like enhanced financial health or more effective responses to climate risks.

Singapore is highlighted as a potential hub to integrate Asia's strengths across innovation, manufacturing, technology deployment, finance, and governance. This role would involve facilitating the cross-border adoption of AI solutions, rather than competing on the scale of AI development, which the report suggests could make Asian innovation more trusted and attractive to investors.