PSG Grant for AI Adoption: Complete Step-by-Step Application Guide
AI adoption is becoming more accessible to Singapore businesses, but cost can still be one of the biggest barriers to getting started. From automating repetitive work to improving customer service and analysing business data, the right AI solution can create measurable productivity gains without requiring a company to build its own AI system from scratch.
For eligible Singapore SMEs, the Productivity Solutions Grant (PSG) has provided funding support for pre-approved digital and AI-enabled solutions. However, businesses considering an application in September 2026 need to be aware of an important change: PSG will cease on 29 September 2026 and will transition into the new EDGE Grant from 30 September 2026.
Here is what businesses need to know about applying for PSG for AI adoption while the scheme remains available.
Understanding PSG for AI Adoption in 2026
The Productivity Solutions Grant helps Singapore businesses adopt pre-approved technology, equipment and productivity solutions. Enterprise Singapore currently lists PSG support at up to 50% of eligible costs for local SMEs, with an annual grant cap of S$30,000 for EnterpriseSG-supported solutions.
AI is increasingly part of this digitalisation landscape. Enterprise Singapore specifically highlights GenAI and AI-enabled solutions for SMEs as solutions businesses can adopt through PSG. These may support activities such as workflow automation, customer engagement, data processing and other productivity-related business functions.
The important distinction is that PSG does not simply fund any AI tool a company chooses. For IT solutions, businesses generally need to select a pre-approved solution package from a pre-approved vendor listed through GoBusiness Gov Assist.
Check Your Eligibility Before Applying
For EnterpriseSG-supported PSG solutions, a business generally needs to be registered and operating in Singapore, have at least 30% local shareholding, and have a group annual sales turnover of no more than S$100 million or group employment size of no more than 200 employees. The purchased, leased or subscribed solution must also be used in Singapore.
There is another rule businesses should pay particular attention to: do not make payment or place a deposit with the vendor before submitting the application. Enterprise Singapore considers this a retrospective application, which is not supported under PSG.
Before choosing an AI solution, start with the business problem instead of the technology. Identify where time, manpower or resources are currently being lost. For example, is your team repeatedly answering the same customer questions? Manually consolidating information? Spending hours processing documents?
A clearer problem makes it much easier to evaluate whether an AI solution will actually improve productivity.
How to Apply for PSG for an AI Solution
Once the business problem and suitable solution have been identified, the application itself can be approached in a few clear steps.
Step 1: Find a supported solution
Search GoBusiness Gov Assist for solutions relevant to your business needs. Compare what each solution actually does rather than choosing one simply because AI appears in its description.
Step 2: Obtain a quotation
For a pre-approved IT solution, obtain a quotation directly from the selected pre-approved vendor. The quotation should match the solution package and be addressed to your company's registered name.
Step 3: Prepare your supporting information
Enterprise Singapore may require information including your company financial statements, vendor quotation, deployment location and expected business impact. Businesses should be able to describe not only what they are buying, but what improvement they expect from it.
Instead of writing that an AI system will simply “improve productivity”, define the intended change. This could be reducing administrative processing time, shortening customer-response time or reducing repetitive manual work.
Step 4: Submit through the Business Grants Portal
Applications are submitted through the Business Grants Portal (BGP) using Corppass. Enterprise Singapore states that the applicant company must directly apply for and manage its grant application.
Step 5: Monitor the application
A complete PSG application usually takes around six weeks to process, although clarification may be requested during the review. Businesses can monitor their application through BGP.
Interestingly, companies may proceed with the project after submitting an application rather than waiting for the outcome. However, doing so carries a risk: if the application is unsuccessful, the business will not be able to claim the grant.
What Happens After PSG Approval?
If the application is approved, the company receives a Letter of Offer setting out the approved amount, qualifying period and conditions of support.
The solution must then be implemented according to the approved application. For IT solutions, Enterprise Singapore states that the solution should be deployed and used for at least 30 days and paid for in full before the claim is submitted. Supporting documents may include invoices, payment records and usage evidence.
This is also where businesses should evaluate whether the technology has actually delivered the intended result.
AI adoption should not end with “the software is installed.” Look at the workflow before and after implementation. Has processing become faster? Are employees spending less time on repetitive tasks? Has customer response improved?
Those outcomes provide a much better indication of whether the AI investment has created real business value.
PSG Is Changing: What Happens After 29 September 2026?
This is particularly important for anyone reading this guide now. Enterprise Singapore has announced that PSG, EDG and MRA will cease on 29 September 2026. From 30 September 2026, businesses will apply for support through the new EDGE Grant, which consolidates these schemes under a broader business-support framework. Existing PSG submissions and approved projects will continue to be processed.
Under EDGE, businesses will be able to seek support across areas including Automation & Digitalisation, Business Strategy and Innovation. Enterprise Singapore currently states support of up to 70% for SMEs and 50% for non-SMEs, depending on the activity, with up to S$100,000 in total grant support per year across EDGE activities.
For businesses beginning their AI journey after the transition, the funding name may change, but the strategic question remains the same: where can AI create meaningful value in the business?
How Emerge Creatives Can Support AI Adoption
Funding can reduce the cost of adopting technology, but it does not determine which technology a business should adopt.
At Emerge Creatives, we help organisations approach AI adoption from the business problem first. Through AI Business Innovation Management, Design Thinking and structured problem framing, businesses can identify meaningful opportunities for AI, examine how new tools fit existing workflows, and develop practical implementation strategies.
The objective is not to introduce AI simply because funding is available. It is to ensure that technology investments support clearer business outcomes, better processes and sustainable organisational capabilities.
Conclusion
PSG has helped lower the barrier for Singapore SMEs looking to adopt productivity and AI-enabled solutions. But with the scheme transitioning to EDGE after 29 September 2026, businesses should also understand that government support for digitalisation is evolving.
Whether applying through PSG now or exploring EDGE next, begin with the problem, not the grant.
A well-defined business challenge makes it easier to choose the right AI solution, measure its impact and turn government support into long-term business value.
Last Words
I will be adding more articles on Design Thinking, Strategy and Innovation throughout the year. Articles of these 5 Step Action Plan and Modern Soft Skills will be added periodically to give my readers a broader insights to how to crush complex problems, overcome future challenges and spot AI opportunities.
Check out more articles via my blog: https://www.emerge-creatives.com/blog-1
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About the Author
Daniel Ling is a regional ex-Design Leader turned educator, and business owner of Emerge Creatives, an registered SSG training provider (RTP) to deliver modern soft skills to professionals through Design Thinking, Business Strategy, and AI Innovation.
With over 15 years of experience in the financial and e-commerce tech industries- including key leadership roles at Lazada, NTUC Income, OCBC, and DBS- Daniel has led cross-regional design teams, built design functions from the ground up, and spearheaded large-scale transformation initiatives. But beyond industry success,
Daniel has reinvented himself as a “designer in a business suit”- equally fluent in creative strategy and commercial impact.
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