AI grants in Singapore for businesses (2026)

In short: There is no AI-only grant now: fund AI projects through the EDGE Grant, which replaced PSG, EDG and MRA on 30 September 2026, or the 400% EIS tax deduction on the first S$50,000 of qualifying AI spending for YA 2027 and YA 2028. The same dollars cannot qualify for both, and EDGE needs an application before work starts.

There is no longer a grant in Singapore that is only for AI. Most businesses now fund an AI project in one of two ways. The first is the EDGE Grant, which replaced the Productivity Solutions Grant (PSG), Enterprise Development Grant (EDG) and Market Readiness Assistance (MRA) on 30 September 2026. The second is the 400% tax deduction for AI adoption under the Enterprise Innovation Scheme, which applies for Years of Assessment 2027 and 2028. Alongside these, IMDA and its industry partners run AI adoption programmes that offer advice, training or subsidised tools rather than cash.

This guide covers each scheme as described on official government pages in October 2026, with a link for every figure. Schemes and caps change, so check the linked page before you commit to a vendor. Anything we could not confirm on an official page has been left out.

Quick summary

The EDGE Grant

What changed on 30 September 2026

Enterprise Singapore’s EDGE Grant page states that EDG, MRA and PSG ceased on 29 September 2026, and that from 30 September businesses apply for support under EDGE. Its FAQ adds that applications submitted before 30 September 2026 are still assessed under the old scheme rules, ongoing projects continue until completion and claim, and no new applications are accepted under the old schemes after that date.

If you read an article or vendor page that tells you to apply for PSG or EDG for an AI project, it is out of date. Some vendors still describe themselves as “PSG-approved”; ask them which EDGE activity their solution now falls under.

What EDGE covers

EDGE groups support into business areas, including Automation and Digitalisation, Business Strategy, Financial Management, Innovation, Internationalisation, Standards and Sustainability, according to the EDGE Grant page. When we checked, the official pages did not list an activity labelled “AI”. An AI project is funded under whichever activity matches what it does: a packaged AI tool may sit under digital solutions, while a larger custom project may fit an innovation or business-improvement activity.

Support levels and caps

The EDGE FAQ sets out:

• Support level: up to 50% for SMEs and up to 30% for non-SMEs, rising to up to 70% for SMEs and 50% for non-SMEs on internationalisation and sustainability activities.
• Annual cap: S$100,000 per company across all activities, resetting every year from 1 April to 31 March.
• Digital sub-cap: within that S$100,000, up to S$30,000 for single-function digital solutions, integrated enterprise systems and pre-scoped equipment.
• SME definition: group annual sales of no more than S$100 million, or group employment of no more than 200 workers.

Who can apply and how

The applicant must be a business registered in Singapore with at least 30% local shareholding by Singapore citizens or permanent residents, per the FAQ. Other points worth knowing before you plan an AI project:

• Apply before you start. Retrospective applications, where work has begun or a deposit has been paid, are not supported.
• Vendor rules vary. Some activities require a pre-approved vendor; others let you choose any vendor. For single-function digital solutions, the FAQ points to the IMDA SMEs Go Digital platform to browse vendors and packages.
• Vendors must be independent. The vendor cannot be related to your company, directors or shareholders.
• Only you can apply and claim. A vendor cannot submit the application for you.
• Reimbursement only. You pay first and claim after the deliverables are complete and paid in full.
• No vendor changes after approval. If you need to switch vendor, you terminate and reapply.

To find the right activity, start with the BizSG grant recommender or book a session with an SME Centre.

The 400% tax deduction for AI adoption

Budget 2026 added AI adoption as a new qualifying activity under the Enterprise Innovation Scheme (EIS). According to IRAS:

• Businesses get a 400% tax deduction on the first S$50,000 of qualifying AI expenditure per Year of Assessment, for YA 2027 and YA 2028.
• Qualifying AI expenditure covers subscribing to or licensing an AI system, and buying qualifying AI business services. IRAS lists these services as including an online platform, system development, consultancy and strategy, data and analytics, research and development, system engineering and compliance, and system-related training, where they relate to developing, deploying, operating or maintaining an AI system.
• It excludes hardware such as servers, storage devices and computing equipment.
• It excludes spending subsidised by a government grant, and IRAS says EIS claims should be net of grants and subsidies.
• Spending above S$50,000 that is otherwise deductible still gets the normal 100% deduction.
• The cash payout option does not apply to the AI category, so the benefit depends on having taxable profits.
• Where one invoice mixes AI and non-AI work, only the AI portion qualifies, apportioned on a reasonable basis if the split is not itemised.

IRAS’s page also says the list of qualified EIS partners is being expanded to include the Sectoral AI Centre of Excellence for Manufacturing for YA 2027 and YA 2028.

In practice, ask vendors to itemise AI work separately on quotes and invoices, and check with your tax adviser which financial year each Year of Assessment covers for your company.

Champions of AI

Enterprise Singapore and Digital Industry Singapore announced the Champions of AI programme in March 2026. It is aimed at leading Singapore-based companies that want to adopt AI across the whole business, with customised support and access to curated expertise. The release does not publish funding amounts or eligibility thresholds, so it is best treated as a programme for larger firms with an enterprise-wide AI plan rather than a grant for a single tool.

IMDA and partner programmes

IMDA’s support is mostly about finding, trying and adopting solutions rather than direct cash grants:

• SMEs Go Digital. IMDA’s SMEs Go Digital programme pre-approves vendor solutions. The EDGE FAQ refers businesses to the SMEs Go Digital platform when choosing single-function digital solutions.
• Digital Enterprise Blueprint. The Ministry of Digital Development and Information’s Digital Enterprise Blueprint page lists industry-partner programmes on AI adoption. These include GenAI x Digital Leaders, which pairs digitally mature SMEs with cloud partner networks to develop GenAI solutions, and the Spark GenAI Programme run by DBS, IMDA and Enterprise Singapore.
• AI bootcamp. In March 2026 IMDA announced an AI bootcamp for enterprises to implement AI projects and develop digital roadmaps.

Each programme has its own criteria and intake dates. Check the programme page before assuming your company qualifies.

How to prepare a grant-ready AI project

Grant officers and tax rules both reward projects that are clearly scoped and documented. Before you approach a vendor or submit anything:

1. Name one business process. “Use AI” is not a project. “Extract line items from supplier invoices into our accounting system, with a person approving each batch” is. A clear process makes it easier to match an EDGE activity.
2. Write down what happens today. Who does the work, how often, which systems are involved, and where errors happen. This becomes your baseline and helps the vendor quote accurately.
3. Decide what the AI may and may not do. Set out which steps stay with a person, especially anything sent to customers, and what data the AI can see. This also prepares you for questions on personal data under the PDPA.
4. Get itemised quotes. Separate subscriptions, build work, data preparation, training and support. EDGE activities have specific supportable cost components, and the EIS deduction only applies to qualifying AI items.
5. Check vendor eligibility early. Confirm whether your EDGE activity needs a pre-approved vendor and that the vendor is unrelated to your company.
6. Do not sign or pay a deposit before applying. Under EDGE, a project that has started is not supported.
7. Plan the claim. Keep the Letter of Offer deliverables, invoices and proof of payment together, and note claim deadlines.
8. Avoid double-counting. Decide which costs go to the grant and which, if any, you will claim under the EIS AI deduction, since the same dollars cannot qualify for both.

If you are unsure where AI fits in your business, an AI readiness assessment is a sensible first step. Our guide to AI chatbot costs shows how one common project is priced.

How we can help

We help Singapore businesses scope AI projects: choosing the process, setting out what the AI should and should not do, estimating build and running costs, and preparing the project description and itemised scope that a grant application or tax claim needs. We do not submit grant applications for you, since only the applicant company can do that. See our AI consulting service, or tell us what you want to improve and we will suggest a practical first step.