Singapore’s AI Innovation Hub: Balancing Growth and Risk Management

Singapore is positioning itself as a regional hub for artificial intelligence (AI) innovation, with the government announcing a S$150 million Enterprise Compute Initiative as part of Budget 2025. This initiative aims to accelerate AI adoption across businesses of all sizes, providing access to advanced AI tools, computing power, and tailored consultancy services. The move is reinforced by AI governance measures unveiled at the AI Action Summit in Paris, demonstrating Singapore’s commitment to driving AI integration while managing associated risks.

As enterprises integrate AI into their operations, robust risk oversight is crucial to prevent misuse and ensure safety. A Deloitte survey of nearly 500 board members and C-suite executives reveals that almost half have yet to formally discuss AI governance at the board level, highlighting the need for organisations to catch up on risk management frameworks.

The Role of Chief Risk Officers in AI adoption

At the heart of this challenge are Chief Risk Officers (CROs), who are no longer confined to traditional risk management. They are expected to develop strategies that unlock growth opportunities, drive value, and safeguard their company’s future reputation. As AI becomes integral to enterprise risk management, CROs can leverage its advanced pattern and data processing capabilities to detect, assess, and mitigate threats while ensuring human judgment and ethical oversight remain at the forefront.

How AI Transforms Risk Management for Risk Professionals

AI’s ability to process vast amounts of data enhances pattern recognition, allowing CROs to detect risk patterns and outliers that might otherwise go unnoticed. AI automation streamlines risk assessments, providing quicker and more objective data collection, analysis, and reporting. This efficiency enables risk professionals to focus on strategic initiatives rather than routine tasks. AI also standardises risk terminology across departments, ensuring consistent communication from the boardroom to frontline operations.

CROs as AI Champions and Ethical Guardians

While AI introduces new risks such as data privacy concerns and algorithmic bias, CROs are called upon to serve as champions and guardians of AI implementation. The relationship between CROs and AI is a partnership, where AI augments a CRO’s capabilities, and CROs bring essential human judgment, ethical oversight, and strategic vision to risk management processes. This synergy creates a more robust approach than either could achieve independently.

The Future of Integrated Risk Management

Moving forward, risk leaders must position themselves as champions of responsible, ethical AI use within their organisations. By becoming knowledgeable about the intersection of AI and ethics, CROs, board members, and other leaders can guide their organisations toward sustainable, trustworthy AI practices that create value while minimising potential harms. The next phase of risk management should integrate AI into the risk management framework, creating something greater than the sum of its parts.

About the Author

Dusk Lim is the Principal for Enterprise Growth, APAC, at Diligent.

Published On Apr 25, 2025 at 10:07 AM IST

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