PSG Grant Eligible AI Solutions for Singapore SMBs

What the PSG Grant Covers

The Productivity Solutions Grant (PSG) is a Singapore government initiative that helps SMBs adopt technology solutions to improve productivity. AI solutions are among the qualifying categories, which means your business may be able to offset a significant portion of the cost of adopting AI tools.

The grant covers pre-approved solutions across categories including customer management, digital marketing, and business operations. AI-powered tools that fall within these categories, such as AI phone answering systems, customer service automation, and digital marketing tools, are eligible for support.

Which AI Solutions Qualify

Not every AI tool on the market qualifies for PSG. The grant covers specific pre-approved solutions from approved vendors. The categories most relevant to AI adoption include customer relationship management systems with AI features, digital marketing tools with AI automation, AI-powered phone and customer service solutions, and inventory and operations management with AI capabilities.

The key requirement is that the solution must be on the IMDA pre-approved list. Vendors apply to have their solutions listed, and once approved, their customers can apply for the grant.

How Much Funding Is Available

The PSG covers a significant percentage of qualifying costs, though the exact percentage is subject to periodic government review. The grant applies to the subscription cost of the solution for a defined period, as well as setup and implementation costs.

There is a maximum grant amount per solution category. For most SMBs, this means the grant covers a substantial portion of the first year's cost for a qualifying AI solution, making the effective monthly cost very manageable.

Eligibility Requirements

To qualify for PSG, your business must be registered and operating in Singapore, have a minimum of 30 percent local shareholding, have group annual sales turnover of under SGD 100 million or group employment of under 200 employees, and not have made a previous claim for the same solution category.

These criteria cover the vast majority of Singapore SMBs. If you are a locally owned small business, you almost certainly qualify.

How to Apply

The application process involves several steps. First, identify the AI solution you want to adopt and confirm it is on the pre-approved list. Second, get a quotation from the vendor. Third, submit your application through the Business Grants Portal (BGP). Fourth, wait for approval (typically a few weeks). Fifth, proceed with the solution deployment.

Some vendors, including Swop Labs, can guide you through the application process and help with the paperwork. This is particularly helpful if you have not applied for a government grant before.

Combining PSG with AI Adoption

The most strategic approach is to combine PSG funding with a phased AI adoption plan. Start with the highest-ROI AI solution (for most service businesses, this is phone answering), use PSG to offset the cost, measure the results, and then consider expanding to additional AI tools.

Our decision framework helps you identify which AI solution to start with, and our ROI guide provides the maths to justify the investment.

For a detailed walkthrough of the PSG application process for AI phone systems specifically, see our PSG guide for AI phone systems.

Talk to Us

Chat with us on WhatsApp to check your PSG eligibility and discuss which AI solution fits your business. We reply within one Singapore business day.