PSG AI Tools: Pre-Approved Solutions Up to S$30K

PSG pre-approves specific AI solutions from registered vendors at up to 50% funding (capped at S$30,000), so you check the official solutions list first—but when your business needs something custom or cross-functional, EDG becomes the smarter path.

What PSG AI Tools Actually Cover

The Productivity Solutions Grant was built to get SMEs moving quickly on pre-approved, off-the-shelf AI tools. Instead of writing a business case from scratch, you pick an AI solution the government has already vetted, the vendor quotes you, you apply through the Business Grants Portal, and if approved, IMDA or ESG pays the vendor directly. You cover the rest. PSG AI tools fund IT solutions and equipment that improve a single business process—not enterprise transformation or bespoke custom builds.

For AI specifically, that means:

• Customer service chatbots that handle enquiries
• Inventory forecasting systems that predict demand
• HR platforms with resume screening or scheduling AI
• Accounting software with automated invoice matching
• Point-of-sale systems with sales analytics

The list is not exhaustive, but it is specific. Every solution sits in a category—Customer Relationship Management, Human Resources Management, Inventory Management—and each has a scope document that spells out what features qualify and what the funding ceiling is.

PSG does not fund general-purpose software or enterprise-wide transformation. It funds defined, off-the-shelf products that solve one business function.

How to Check If an AI Tool Is PSG Pre-Approved

Go to the Business Grants Portal, navigate to the PSG section, and open the pre-approved solutions list. It is a searchable table sorted by sector and solution category. Each entry shows:

• Vendor name
• Solution name
• What it does
• Supported cost (the maximum eligible amount before the 50% is applied)
• Whether it includes training or customisation hours

If the AI tool you are considering appears on that list, you can apply. If it does not, PSG is not an option—but that does not mean funding is off the table.

Some vendors market themselves as "PSG-eligible" without appearing on the list. Always verify. Ask the vendor for their solution reference number and cross-check it yourself. If they cannot provide one, they are not pre-approved, regardless of what their website says.

What Makes an AI Solution Qualify Under PSG

Pre-approval hinges on a few criteria:

• Single-function focus: The tool solves one clear problem—customer enquiries, expense approvals, appointment scheduling. It is not a platform you build on.
• Standardised deployment: The vendor installs the same core system for every client. Customisation is limited to configuration, branding, or basic workflow tweaks.
• Proven in Singapore: The vendor has local references and support. The solution has been deployed multiple times in similar businesses.
• Transparent pricing: The cost breakdown is fixed. There is no open-ended consulting or multi-year ramp.

AI tools that qualify tend to be SaaS products with a clear annual subscription or one-time implementation fee. They come with user guides, onboarding support, and predictable timelines.

What does not qualify: bespoke machine learning models, custom integrations that touch three different systems, or AI pilots where the scope is still being defined. Those projects need EDG, not PSG.

When to Route Through EDG Instead

Enterprise Development Grant funds what PSG cannot: projects that cut across departments, require serious integration, or involve technology that does not yet exist on a shelf. If your AI initiative needs any of the following, EDG is the right vehicle:

• Custom algorithms: You are building something specific to your data—demand forecasting trained on five years of your sales cycles, or a recommendation engine tuned to your product catalogue.
• System integration: The AI tool must talk to your ERP, your CRM, and your logistics platform. You need middleware, APIs, and someone to write the logic.
• Process redesign: The AI is not a drop-in replacement. You are restructuring how your team works—moving from manual order verification to exception-based review, for example.
• Organisational change management: You need workshops, role redefinition, and upskilling alongside the software.

EDG also funds up to 50% of qualifying costs, but the cap is higher and the scope is broader. You are not picking from a list; you are pitching a project with milestones, deliverables, and measurable outcomes.

I have built systems for clients where the first conversation was about PSG, but ten minutes in we realised the business needed three modules talking to each other and a workflow engine in the middle. That is EDG territory. The application takes longer, but the funding supports what the business actually needs.

A Worked Example: Customer Service AI

A retail chain with twelve outlets wants to reduce customer service workload. Walk-in and phone enquiries are eating forty hours a week. They are looking at an AI chatbot.

PSG path: They find a pre-approved Customer Relationship Management solution that includes a chatbot module. The vendor scope covers WhatsApp integration, FAQ training, and basic handoff to live agents. Supported cost is S$20,000, so the grant covers S$10,000. The chain pays S$10,000. Deployment takes six weeks. The chatbot handles store hours, product availability, and return policies. It works, but it does not touch the point-of-sale system or inventory database.

EDG path: They want the chatbot to pull live stock levels, check order status, and escalate refund requests directly into the helpdesk ticketing system. They also want to train the model on two years of actual customer conversations, not generic retail FAQs. This requires custom NLP work, API development, and integration with three backend systems. Supported cost is S$80,000, grant covers S$40,000. Deployment takes four months. The chatbot becomes part of the operational backbone, not a standalone widget.

Both are valid. The PSG path is faster and simpler if the pre-approved solution covers your use case. The EDG path is necessary when it does not.

What Happens After You Pick a Solution

Once you have identified a PSG-listed AI tool, the process is:

1. Get a quote from the registered vendor
2. Submit your application through the Business Grants Portal
3. Wait for approval (typically two to four weeks)
4. Sign the vendor contract and begin deployment
5. Claim the grant upon completion and submit supporting documents

The vendor invoices IMDA or ESG directly for the funded portion. You pay the balance. The entire cycle—from quote to claim—usually runs eight to twelve weeks for straightforward deployments.

For EDG, the application is heavier: project plan, cost breakdown, outcomes framework, and often a letter of support from your accountant or consultant. Approval can take six to eight weeks. The upside is flexibility. You design the solution, not the vendor.

Frequently Asked Questions

Can I use PSG for a subscription-based AI tool?
Yes, if the solution is pre-approved and the vendor structures the cost as either an upfront implementation fee or the first year of subscription. PSG does not fund recurring costs beyond the initial deployment window, so most vendors roll twelve months into the quote and you handle renewals separately.

What if I need two PSG AI tools—can I stack them?
You can apply for multiple PSG solutions across different categories, but each application is assessed separately and the S$30,000 cap applies per solution, not per company. If you are deploying AI-driven HR software and an AI inventory system, both can qualify, but you cannot double-dip on shared modules.

Do I need a consultant to apply for PSG?
No. The application is straightforward if you are working with a pre-approved vendor. They often walk you through the form. EDG applications are more involved, and some businesses bring in advisors to structure the project scope and outcomes, but it is not a requirement—just a time-saver if you are unfamiliar with grant documentation.

How long does PSG approval take for AI tools?
Typical PSG approval takes two to four weeks from submission. The full cycle from quote to claim completion is eight to twelve weeks for straightforward AI tool deployments, as long as the solution is already on the pre-approved list.

What's the difference between PSG and EDG for AI projects?
PSG covers pre-approved, off-the-shelf AI tools with a S$30,000 cap and faster approval. EDG funds custom AI builds, system integration, and cross-departmental projects with higher caps and longer timelines. Choose PSG if the tool exists on the vendor list; choose EDG if you need custom algorithms or deep integration.

Moving Forward With Clarity

Choosing AI tools that qualify for government funding starts with understanding what PSG actually covers: pre-approved, single-function solutions that speed up deployment and reduce upfront cost. Check the official solutions list, verify the vendor, and know your S$30,000 ceiling. When your business needs something more integrated or tailored, EDG opens the door to custom builds without losing the funding advantage.

I have walked dozens of businesses through this decision, and the clarity always comes down to fit: does the pre-approved tool solve your problem, or are you forcing a square solution into a round workflow? If you are still weighing options, start with the PSG vendor directory to see what is already listed, then read through the EDG overview if your project scope is more ambitious. Either way, the funding exists to support the move—you just need to apply through the right channel.