Singapore’s giant sovereign wealth fund, GIC, has been investing in tech for decades and is now taking a larger stake in generative AI technology. This move comes as the technology sector continues to grow and expand, with more companies looking to capitalize on the potential of artificial intelligence (AI).
Generative AI is a type of artificial intelligence that uses algorithms to generate new data from existing data. It can be used for a variety of tasks such as creating images, videos, or text. It can also be used to create predictions about future events or trends. The goal of generative AI is to create data that is useful and accurate without requiring human input.
GIC’s Investment Strategy
GIC has invested hundreds of billions of dollars in assets over the years and has been increasing its stake in generative AI technology. In April 2023, GIC boosted its stake in Pagaya Technologies, an Israeli firm offering artificial intelligence-driven solutions. According to Goldman Sachs Research estimates, the total addressable market for generative AI software is estimated at $150 billion.
GIC also recently increased its stake in a Fortune 500 software firm which implemented generative AI into their customer service operations. The results were impressive; worker productivity increased by 14%. This shows the potential for companies to use generative AI to improve efficiency and reduce costs.
Singapore’s Commitment To A.I. Development
In addition to GIC’s investments in generative AI technology, Singapore has committed over $100 million towards A.I development over the next five years through its National Research Foundation (NRF). This initiative will be helmed by Tan Kok Yam and will focus on developing A.I applications across various industries including healthcare, finance and education.
The NRF will also look into how A.I can be used responsibly and ethically while ensuring that it does not lead to job displacement or other negative consequences for workers or society as a whole.
Generative AI technology offers many opportunities for businesses looking to increase efficiency and reduce costs while also providing ethical guidelines for responsible use of this powerful tool. With Singapore’s commitment towards A.I development through its NRF initiative and GIC’s increased investment in generative AI technologies, it looks like this trend will continue well into the future with exciting possibilities ahead!
