Asia's AI edge may come from applying tech, not bigger models
Source: Fintech News SG
DBS Group Research argues Asia's AI opportunity lies in applying the technology to real problems rather than building the biggest models, with Singapore positioned to connect deployment, capital and governance.
Asia may not need the biggest AI models to win the next wave of the technology race, according to new DBS Group Research. The study, Intentional AI: Connecting Intelligence, Capital and Outcomes, argues that easy access to powerful AI tools is fast losing its power to set a company apart. What separates winners, it suggests, is choosing the right problems and converting capability into tangible results.
The funding picture backs that up. AI ventures worldwide drew roughly US$270 billion in venture capital during 2025, but close to 80% of it landed in North America while Asia took just 5.7%. The region's strength lies elsewhere: in 2024 Asia hosted 74% of global industrial robot installations, versus 16% for Europe and 9% for the Americas.
DBS Research expects the emphasis to shift from technical prowess to practical use. Manufacturing depth, physical infrastructure and deployment experience give the region a platform to move AI beyond prediction into action. The report flags ageing societies, healthcare gaps, climate resilience and financial inclusion as challenges that double as market openings - valuable only when the gains show up as real improvements.
The same logic runs through financial services: widening access pays off only when customers make better economic decisions. Sharper weather forecasts, similarly, earn their keep when communities act on them. In that framing, Singapore need not compete on model scale; it can knit deployment, capital and governance together across the region and help Asian innovation travel further, more trusted by investors.
DBS is practising what it preaches. The bank says it runs over 2,000 AI models across more than 430 use cases, delivering around S$1 billion of economic value annually, and Global Finance crowned it the World's Best AI Bank for 2025.
Why it matters for Singapore: Singapore's advantage is not compute or capital at scale - it is the plumbing: a trusted financial centre, credible governance and a business environment built for cross-border work. That matches the report's suggestion that the city-state could orchestrate deployment, finance and rules so Asian AI reaches further and looks safer to investors. The message for local firms is blunt: stop chasing the biggest models and start selling measurable outcomes.
