Singapore refreshes retail digital plan to drive AI adoption amongst SMEs

It places stronger focus on AI adoption across retail operations.

Enterprise Singapore (EnterpriseSG) and the Infocomm Media Development Authority (IMDA) have launched a refreshed Retail Industry Digital Plan (IDP) to guide more than 2,000 small and midsize enterprises (SME) retailers in their digital transformation.

The updated IDP builds on the original 2017 framework, which helped SMEs adopt digital tools in stages.

More than 75% of retail SMEs have adopted basic solutions, whilst 45% have taken up intermediate tools. However, government findings show limited adoption of advanced technologies.

The refresh comes amidst rising costs, labour shortages, and strong global e-commerce competition, alongside rapid growth in AI and retail technologies.

The refreshed IDP introduces two key changes. It reorganises solutions by business functions—front-of-house, back-of-house, and corporate operations—rather than digital maturity stages, making it easier for retailers to identify and address specific operational needs.

Additionally, it places a stronger focus on AI adoption across all areas of retail, including AI concierge and chatbots for customer engagement, AI-driven demand forecasting for inventory management, and generative AI tools for marketing content creation and staff training to improve efficiency and productivity.

EnterpriseSG highlighted examples such as local florist Far East Flora, which reportedly reduced content production time by about 50% after adopting GenAI marketing tools.

To support safe digital adoption, the refreshed IDP also introduces a Cybersecurity and Data Protection Roadmap. It provides SMEs with practical guidance and access to tools such as anti-malware systems, firewalls, backup solutions, and secure network protection.

Moreover, the plan encourages retailers to invest in job redesign and workforce upskilling to ensure employees can effectively use new digital tools.

Retailers are also encouraged to work with EnterpriseSG and Workforce Singapore to develop integrated enterprise and workforce transformation strategies.

The announcement was made at the Retail Reimagined – From Now to Next event by Senior Minister of State for Trade and Industry, and Culture, Community and Youth, Low Yen Ling.