Singapore AI Grants 2026: How the Government Co-Funds Your Business's AI Upgrade

This is the simplest grant. The government has a list of pre-approved AI products on the GoBusiness portal — things like smart accounting systems, chatbots, inventory trackers, and HR tools. You pick one from the list, you pay the vendor 100% upfront, use the tool for at least 30 days, then submit your claim. The government reimburses you 50%.

The annual cap is S$30,000 per year. That means the government will reimburse up to S$30,000 each year for pre-approved solutions.

Example: You run a neighbourhood bakery and want AI to predict how many loaves to bake each day so you waste less. You find an approved inventory AI on the GoBusiness list. It costs S$8,000/year. You pay the vendor S$8,000 upfront. After using it for a month, you submit your claim. A few weeks later, the government reimburses you S$4,000. Net cost to you: S$4,000.

Got a specific business problem that no off-the-shelf product can solve? EDG co-funds custom AI solutions built specifically for your business. Here is how it works: you submit a proposal. If approved, you execute the project at your own cost first. After the project is done, you submit claims with invoices and receipts. The government reimburses up to 50% (or up to 70% for qualifying SMEs).

Be aware: it takes months from project completion to actual payout. Larger claims require an audit. This is not quick money — it is a serious co-investment by the government in your business's future.

Example: You run a car workshop chain with 8 outlets. You want AI to predict which spare parts to stock at each outlet based on the cars in your neighbourhood. No off-the-shelf tool does this. An AI company quotes S$200,000. You pay them throughout the project. After it is done and audited, the government reimburses you up to S$140,000 (70%). Your net cost: S$60,000 for a system that saves you S$150,000/year in excess stock.

ECI is a hybrid model with two parts:

1. AI consulting subsidy — The government pays 70% of AI consulting costs directly to the consultant. You pay the remaining 30% to the consultant.
2. Cloud platform credits — The cloud provider (Google, Microsoft, or AWS) gives you platform-specific credits to use their AI services. These credits are not cash — they are like a prepaid card for that specific cloud platform. Use them or lose them within 12 months.

Important: This programme requires 10 or more employees and some prior experience with technology. It is not designed for complete beginners.

You can apply with multiple cloud providers separately, up to S$250,000 per provider. Read our full ECI guide for details.

Example: You run a mid-sized logistics company (50 staff). You already use some basic automation. ECI assigns an AI consultant — the government pays 70% of their fee directly. Plus, you get cloud credits from Google/Microsoft/AWS to run your AI models. The credits are like a prepaid card for cloud services — use them or lose them within 12 months.

This one is unique. You don't receive money — you receive skilled manpower. AISG deploys their own AI engineers to work on your project, worth up to S$150,000 in engineering resources.

Your company must match with cash, manpower, and/or data. That means you provide the business knowledge, assign staff to work alongside their engineers, share your production data, and cover some operational costs.

Example: You run a food manufacturing company. You want AI to detect defective products on your packaging line. AISG sends 2 of their AI engineers to work with your team for 6 months. They build and train the AI model. Your contribution: provide the production data, assign 1-2 staff to work with them, and cover some operational costs. You get S$150K worth of engineering talent without paying the full rate.

This is a 3-month trial programme for businesses that want to test pre-approved generative AI solutions (ChatGPT-style tools) before committing serious money. The government covers 50% of the trial cost.

Think of it as a test drive. You try the AI tool for 3 months at half price. If it works for your business, you can then commit to a full deployment (potentially using EDG or other grants to co-fund the bigger rollout).

Example: You run an insurance agency and want to try AI that reads and summarises policy documents. Pick a pre-approved GenAI tool, trial it for 3 months, government covers 50% of the trial cost. Low risk way to see if AI actually helps before committing big money.

This is for startups only — not general SMEs. There are two tracks: Proof of Concept (POC, up to S$400K) and Proof of Value (POV, up to S$800K). The money is disbursed in milestones — hit a milestone, get the next tranche of funding.

The catch: Enterprise Singapore gets equity subscription rights — they can choose to take shares in your company later. It is more like having an investor than receiving a gift. Make sure you understand the equity terms before you apply.

Example: You are building a startup that uses AI to help elderly Singaporeans manage their medications. You need S$300K to build and test the prototype. Startup SG Tech funds it in stages — hit your first milestone, get the first tranche, and so on. But note: the government gets the right to buy shares in your company later. It is like having an investor, not a gift.

This is not a cash grant — it is a tax benefit. When you spend money on qualifying AI-related activities (like buying AI services, R&D, or training), you get a 400% tax deduction on that spending. That means the tax savings are real, but you need to be profitable to benefit fully.

If your business is not profitable yet, you can convert the benefit to a S$20,000 cash payout per qualifying activity instead. Not per dollar spent — per qualifying activity.

The best part? You can use this on top of the other grants. Your out-of-pocket costs from PSG, EDG, or other grants can qualify for EIS tax deductions.

Example: Your accounting firm spent S$50,000 on AI tools this year. With EIS, you get a S$200,000 tax deduction (400% of S$50K). At the 17% corporate tax rate, that saves you about S$34,000 in taxes. Not cash in hand, but real savings. If your business is not profitable yet, you can convert to a S$20K cash payout instead.