PSG Grant for AI Adoption: Complete Step-by-Step Application Guide
- cmo834
- Sep 18, 2025
- 9 min read
Table Of Contents
Understanding the PSG Grant for AI Solutions
Eligibility Requirements for PSG Grant
Pre-Application Preparation
Step-by-Step PSG Grant Application Process
After Submission: What to Expect
Common Mistakes to Avoid
Maximizing Your PSG Grant for AI Implementation
Conclusion: Accelerating Your AI Adoption Journey
PSG Grant for AI Adoption: Complete Step-by-Step Application Guide
In today's rapidly evolving business landscape, artificial intelligence (AI) has emerged as a transformative force for organizations of all sizes. For Singapore-based businesses looking to harness the power of AI technologies, the Productivity Solutions Grant (PSG) represents a significant opportunity to defray implementation costs and accelerate digital transformation initiatives.
Navigating government funding applications can be challenging, particularly when it comes to emerging technologies like AI. This comprehensive guide will walk you through the entire PSG grant application process for AI solutions, from determining your eligibility to submitting a successful application and implementing your chosen solutions.
As specialists in AI Business Innovation Management and Design Thinking, we've helped numerous organizations strategically integrate AI technologies through structured frameworks and proven methodologies. Let's explore how you can leverage the PSG grant to fund your AI adoption journey and gain a competitive edge in your industry.
Understanding the PSG Grant for AI Solutions
The Productivity Solutions Grant (PSG) was introduced by Enterprise Singapore as part of the government's initiative to help businesses build stronger capabilities and improve operational efficiency. For companies exploring Artificial Intelligence (AI) solutions, the PSG grant specifically supports the adoption of pre-approved AI technologies that can enhance productivity and drive business transformation.
The PSG grant for AI solutions typically covers up to 70% of qualifying costs, with higher support rates occasionally available for specific sectors or during economic challenges. This funding can significantly reduce the financial barriers to AI adoption, allowing businesses to implement cutting-edge technologies that might otherwise be cost-prohibitive.
Key AI solution categories supported under PSG include:
Customer service chatbots and virtual assistants
Data analytics and business intelligence platforms
Process automation solutions
Computer vision applications
Predictive maintenance systems
Industry-specific AI tools
It's important to note that only pre-approved vendors and solutions are eligible for PSG funding. The government maintains a curated list of solutions that meet quality and security standards, ensuring businesses invest in reliable technologies.
Eligibility Requirements for PSG Grant
Before starting your application process, it's essential to confirm your business meets all eligibility criteria for the PSG grant. The basic requirements include:
Business Registration and Operations
Your business must be registered and operating in Singapore
Must have a minimum of 30% local shareholding
Annual sales turnover should be less than S$100 million OR employment size less than 200 workers
Solution-Specific Requirements
The AI solution must be purchased, owned, and used in Singapore
The solution must be selected from the pre-approved list on the Business Grants Portal (BGP) or Productivity Solutions Grant (PSG) website
Implementation must not have commenced before grant application
Industry-Specific Considerations
Some sectors may have additional eligibility criteria or specialized AI solutions designed for their unique challenges. Industries like manufacturing, retail, logistics, and healthcare often have sector-specific AI tools available through the PSG program.
A key consideration in your eligibility assessment should be aligning the AI solution with your Business Strategy. The PSG grant evaluation process looks favorably on applications that clearly demonstrate how the AI technology will address specific business challenges and contribute to long-term growth objectives.
Pre-Application Preparation
Successful PSG grant applications begin with thorough preparation. Before submitting your application, complete these essential steps:
1. Identify Your Business Needs and Challenges
Start with effective Problem Framing to pinpoint the specific operational challenges that AI could help solve. Consider conducting a systematic assessment of your current processes, customer pain points, and competitive pressures. This analysis will help you articulate clear objectives for your AI implementation.
2. Research Pre-Approved AI Solutions
Explore the list of pre-approved AI solutions on the Business Grants Portal (BGP) that address your identified business needs. For each potential solution, evaluate:
Features and capabilities
Implementation requirements
Total cost of ownership
Compatibility with existing systems
Vendor track record and support services
3. Engage with Vendors for Quotations
Contact shortlisted vendors to request detailed quotations and implementation proposals. During these discussions:
Ask for case studies from similar businesses
Clarify technical requirements and integration points
Discuss implementation timelines
Understand training and support offerings
Request a breakdown of all costs involved
4. Develop an Implementation Plan
Create a comprehensive implementation plan that outlines how the AI solution will be integrated into your business operations. This plan should include:
Implementation timeline with key milestones
Resource allocation (budget, staff, equipment)
Change management strategy
Training requirements
Expected outcomes and success metrics
Utilizing an Innovation Action Plan framework can help structure this process and ensure all critical elements are addressed. This preparation not only strengthens your grant application but also sets the foundation for successful implementation once funding is approved.
Step-by-Step PSG Grant Application Process
With your preparation complete, you're ready to begin the formal application process. Follow these detailed steps to submit your PSG grant application for AI adoption:
Step 1: Register for CorpPass Access
All PSG applications must be submitted through the Business Grants Portal (BGP), which requires CorpPass authentication. Ensure your company has a valid CorpPass account with the appropriate access rights assigned to the individual completing the application.
Step 2: Log into the Business Grants Portal
Access the Business Grants Portal (BGP) at https://www.businessgrants.gov.sg/ using your CorpPass credentials. Once logged in, you'll be directed to the dashboard where you can view all available government grants.
Step 3: Select the PSG Application
From the dashboard, locate and select "Productivity Solutions Grant (PSG)" from the list of available grants. The system will guide you through a preliminary eligibility check before proceeding to the full application.
Step 4: Complete Company Profile
Provide or verify your company information, including:
Business registration details
Company address and contact information
Business activity and industry classification
Company size and annual revenue
Shareholding structure
Ensure all information is accurate and matches your ACRA records, as discrepancies may delay your application processing.
Step 5: Select AI Solution and Vendor
Browse the pre-approved AI solutions or search for specific vendors/solutions you've researched during your preparation phase. Select the appropriate solution category and the specific product you wish to implement.
You'll need to upload the vendor quotation obtained during your pre-application preparation. Ensure the quotation includes:
Detailed description of the AI solution
Itemized cost breakdown
Implementation timeline
Vendor's company information
Quotation validity period
Step 6: Complete Project Implementation Details
Provide information about your implementation plan, including:
Project start and end dates
Implementation locations
Key project milestones
Expected outcomes and productivity improvements
Be specific about how the AI solution aligns with your AI Strategy Alignment and business objectives. Quantify the expected benefits where possible (e.g., "20% reduction in processing time" or "15% improvement in customer response rates").
Step 7: Cost Breakdown and Funding Request
Enter the cost details from your vendor quotation, categorizing expenses according to the portal's requirements. The system will automatically calculate the grant amount based on the eligible costs and prevailing support rates.
Review all figures carefully before proceeding, as errors at this stage could affect your funding amount.
Step 8: Declaration and Submission
Complete the declaration section, confirming that all provided information is accurate and that your company meets all eligibility requirements. This section also includes acknowledgment of terms and conditions related to the grant.
After a final review of your entire application, submit it through the portal. You'll receive an acknowledgment email with a reference number for tracking purposes.
After Submission: What to Expect
Once you've submitted your PSG grant application for AI adoption, here's what happens next:
Application Review Process
Your application will undergo a thorough evaluation by Enterprise Singapore or the relevant government agency. This assessment typically focuses on:
Eligibility verification
Appropriateness of the selected AI solution
Reasonableness of costs
Potential productivity impact
Implementation feasibility
The review process generally takes 4-6 weeks, though this timeline can vary based on application volume and complexity.
Responding to Queries
During the review, you may receive requests for additional information or clarification about certain aspects of your application. Respond promptly and thoroughly to prevent delays in processing.
Approval and Letter of Offer
If your application is approved, you'll receive a Letter of Offer (LOO) outlining:
Approved grant amount
Terms and conditions
Project implementation timeline
Reporting requirements
Disbursement conditions
Review this document carefully and return the signed acceptance within the stipulated timeframe (typically 30 days).
Implementation and Claim Submission
After accepting the LOO, proceed with implementing your AI solution according to the approved plan. Keep detailed records of all implementation activities, including:
Invoices and payment receipts
Delivery and installation documentation
Training attendance records
User acceptance testing results
Before-and-after performance metrics
Once implementation is complete, submit your claim through the Business Grants Portal, attaching all required supporting documents. Claims must typically be submitted within 30 days of project completion.
Common Mistakes to Avoid
Even well-prepared applicants can encounter obstacles in the PSG grant application process. Here are common pitfalls to avoid:
Insufficient Business Need Justification
Many applications fail because they don't clearly articulate how the AI solution addresses specific business challenges. Be explicit about the problems you're solving and the expected impact on your operations.
Incomplete Documentation
Missing or incomplete supporting documents can significantly delay your application. Double-check that all required attachments are included and properly formatted before submission.
Premature Implementation
Starting implementation before receiving grant approval will disqualify those expenses from funding. Wait for official approval before commencing any work with your selected vendor.
Unrealistic Timeline and Budget
Setting overly ambitious implementation timelines or underestimating costs can lead to project delays and budget overruns. Work closely with your vendor to develop realistic projections.
Neglecting Change Management
Failing to plan for the organizational change required for successful AI adoption can undermine your implementation. Consider how the new technology will affect workflows and staff, and prepare accordingly.
Poor Vendor Selection
Choosing a vendor solely based on cost rather than capability and fit can lead to implementation challenges. Thoroughly evaluate vendors' expertise and support capabilities before making your selection.
Maximizing Your PSG Grant for AI Implementation
To extract maximum value from your PSG-funded AI implementation, consider these strategic approaches:
Adopt a Holistic Implementation Approach
Successful AI adoption requires more than just installing new technology. Take a Human-Centred Innovation approach that considers how AI will integrate with your people, processes, and existing systems. This holistic perspective improves adoption rates and overall impact.
Invest in Staff Training and Development
Allocate resources for comprehensive training to ensure your team can effectively utilize the new AI capabilities. Consider both technical training on the specific solution and broader AI literacy to build organizational capacity.
Implement in Phases with Prototyping
Rather than attempting a complete rollout immediately, consider a phased implementation approach that begins with a Prototype or pilot. This allows you to test the solution in a controlled environment, gather feedback, and refine your approach before scaling.
Measure and Communicate Results
Establish clear metrics to track the impact of your AI implementation on business outcomes. Regularly communicate these results to stakeholders to maintain momentum and support for your digital transformation initiatives.
Plan for Continuous Improvement
View your PSG-funded AI implementation as the beginning of your AI journey, not the destination. Develop a roadmap for continuous enhancement and expansion of your AI capabilities, leveraging the 5-Step Strategy Action Plan to guide ongoing development.
Explore Integration Opportunities
Look for opportunities to integrate your new AI solution with existing systems and workflows. These integration points often yield additional productivity gains beyond the core implementation.
Engage in Future Thinking
Consider how your AI implementation fits into your long-term technology strategy. Use structured Ideation sessions to explore potential expansions or complementary technologies that could build upon your initial implementation.
Conclusion: Accelerating Your AI Adoption Journey
Navigating the PSG grant application process for AI adoption may seem complex, but with proper preparation and a structured approach, it becomes a manageable pathway to digital transformation. The financial support provided through the PSG grant can significantly reduce the barriers to implementing powerful AI solutions that drive productivity and competitive advantage.
Remember that successful AI adoption extends beyond securing funding—it requires thoughtful integration with your business strategy, careful vendor selection, and comprehensive implementation planning. By approaching AI adoption as a strategic initiative rather than merely a technology purchase, you position your organization to realize substantial and sustainable benefits.
At Emerge Creatives, we understand that AI implementation is both a technical and organizational challenge. Our expertise in AI Business Innovation Management and Design Thinking equips businesses with the frameworks and methodologies needed to transform AI investments into tangible business outcomes.
The PSG grant represents not just financial assistance but an opportunity to leapfrog competitors and position your business for future success in an increasingly AI-driven marketplace. By following the steps outlined in this guide and approaching your implementation with strategic intent, you can maximize the return on your PSG-funded AI investment and set the foundation for continued innovation.
Ready to accelerate your AI adoption journey with expert guidance? Our team specializes in helping businesses develop strategic approaches to AI implementation that align with PSG grant requirements while maximizing business impact. Contact us today to learn how we can support your PSG grant application and AI transformation initiatives.
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