AI GUIDE FOR BOARDS IN SINGAPORE
Section II: Strategy and Value Creation
High-impact use cases must be both strategically relevant and realistically deployable. Automating an ine cient process may simply produce errors at greater speed. Real value is more likely to come from redesigning workows to leverage AI capabilities eectively rather than replicating existing processes with automation.
Management must be guided to focus on areas where AI can materially improve on: speed, quality, insight generation, service delivery or risk management.
Boards should distinguish clearly between AI outputs and business outcomes.
4.2 Assessing Competitive Advantage
3. New AI-enabled products or services: Oerings that reshape customer experience or competitive positioning.
Access to frontier AI models alone is unlikely to provide sustainable competitive advantage, as technology is increasingly commoditised. More durable advantages are likely to arise from how organisations combine AI with proprietary data, domain expertise, operation know-how and deep integration into business workows.
A layered approach helps distinguish between incremental operational improvements and initiatives that change how the organisation competes in the market.
4.2.1 Identifying strategic advantages
Boards should assess where the organisation possesses assets or capabilities that are hard to replicate such as unique customer relationships, proprietary operational data, industry-speci c expertise, established distribution channels, or embedded service ecosystems. For example: • e success of GrabMaps was not derived solely from AI capabilities, but from the application of AI to hyperlocal Southeast Asia market data and deeply integrated service infrastructure. Boards may nd it useful to evaluate AI opportunities across three strategic layers: 1. Workforce enablement: AI tools that improve employee productivity and e ciency. 2. Workow redesign: AI-enabled redesign of operational processes and decision- making.
4.2.2 Applying a disruption lens
Boards should assess AI not only as a productivity tool, but as a potential source of market disruption. In some cases, AI may strengthen the current business model; in others, it may lower barriers to entry or entirely reshape customer expectations. Boards should consider whether AI is simply improving operational e ciency or fundamentally changing the basis of competition in the industry.
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