Keynote Speech by SMS Tan Kiat How at SAP NOW AI Tour Southeast Asia

Mr Liher Uzbizu, President and Managing Director for SAP Southeast Asia

Mr Stefan Steinle, Executive Vice President and Head of SAP Global Customer Support

Mr Irfan Khan, President and Chief Product Officer, SAP Data & Analytics

Ms Eileen Chua, Managing Director for SAP Singapore

Distinguished guests

Ladies and gentlemen.

1. Today I’d like to talk about something that’s close to everyone’s hearts. Yes, it’s about AI, but beyond just AI – it’s about the tech industry, and for those who are thinking about how we look at careers in the tech industry.

2. Whether you are just starting your career, leading a business, or responsible for developing people, I think many of us here in this room are asking similar questions.

   1. Young professionals ask: "Will AI change the profession I have trained for?"

   2. Business leaders, like you, ask: "How will AI change my organisation and my competitive advantage?"

   3. Educators ask: "How do we prepare students for jobs that are still evolving?"

   4. Governments and policymakers ask: "How do we prepare our people for an economy being reshaped by AI?"

3. At first glance, these seem like different questions. I don't think they are. I think they are all asking the same thing – what becomes valuable in the age of AI?

4. For many people, excitement about AI is accompanied by uncertainty. Every day, we hear about another breakthrough.

   1. AI writes software.

   2. AI analyses data.

   3. AI creates content.

   4. AI automates tasks that once required teams of people.

5. At the same time, organisations are under pressure to improve productivity, transform faster and stay competitive. Young professionals wonder whether they have chosen the right career. Business leaders wonder whether their organisations are prepared for the next wave of change.

6. The questions may sound different. But they come from the same place. How do we remain relevant in a world that is changing so quickly?

7. Those questions remind me of the beginning of my own career. Almost thirty years ago, I graduated with a degree in computers. It wasn't exactly an ideal time to enter the technology industry. Some of you remember that the dot-com bubble had burst. Technology companies were collapsing. People questioned whether the Internet had been overhyped. A few years later, another debate emerged – "Does IT really matter?"

8. Technology was often seen as a support function, something that organisations could outsource. Looking back today, that seems almost impossible to imagine. But that was the mood at the time.

9. It taught me something that has stayed with me throughout my career. Every generation enters this profession during a period of uncertainty. The questions change. The technology changes. But the uncertainty doesn't.

10. Over the past year, I have spent a lot of time reflecting on the questions that young professionals, business leaders and educators are asking today. I spent a lot of time talking to them, understanding them and where they come from, and I have come to one conclusion.

11. Much of today's discussion focuses on what AI can do.  It can write code. Generate content. Analyse data. Build prototypes. These are remarkable advances. But I think the more important question is not what AI can do. It is what AI changes.

12. Every technological revolution changes the economics of work. It changes what becomes easy. It changes what becomes scarce. And because scarcity changes, what differentiates people and organisations changes too.

13. Think about previous waves of technology. When spreadsheets became common, calculation became easier. But insight became valuable. When the Internet made information widely accessible, memorising facts became less important. But judgement became valuable.

14. AI is no different. It is making many aspects of software development and knowledge work dramatically faster. But that does not mean expertise matters less.

15. In fact, let me be absolutely clear.

    1. Technical excellence matters more than ever.

    2. Computer science still matters.

    3. Software engineering still matters.

    4. Systems thinking. Cybersecurity. Architecture.

    5. These remain the foundation of the tech profession.

16. As AI becomes more capable, strong fundamentals become even more important. Because they help us understand what AI is doing. Recognise its limitations. Challenge its assumptions. And know when human judgement matters most. The foundations endure. What changes is what differentiates us.

17. Increasingly, the differentiator lies in how we combine these technical foundations with something more.

    1. The ability to identify meaningful problems.

    2. To understand customers.

    3. To work across disciplines.

    4. To combine technology with business and domain expertise.

    5. To build systems that people trust.

    6. To translate technology into real-world impact.

18. That is why our own study of ICT graduates found that employers continue to value strong technical skills, while placing increasing emphasis on business acumen, communication skills and the ability to solve problems in real business contexts. Or put it another way: Technology determines what is possible, people determine what is valuable.

19. The labour market tells a similar story. The headlines tell one story. The data tells another. Yes, parts of the ICT sector are restructuring. Some companies are hiring more cautiously. Those anxieties are real.

20. But when we look across the wider economy, demand for technology talent continues to grow. Today, in Singapore, about two-thirds of technology jobs are outside the ICT sector. I’m very sure that trend is so in many other markets around the region. Think about what that means.

21. Technology is no longer simply an industry. It has become a capability that every industry depends upon.

    1. Healthcare needs technology professionals.

    2. Manufacturing needs technology professionals.

    3. Financial services need technology professionals.

    4. Many of you here from different industries need technology professionals.

22. The future of ICT is not becoming smaller. It is becoming broader. And that means the opportunities before this generation are broader as well.

23. Imagine being the engineer who helps doctors diagnose diseases earlier. The technologist who helps factories become safer and more sustainable. The architect who designs trusted AI systems for financial services. Or the team that transforms the way governments serve millions of citizens. These are the opportunities that lie ahead.

24. We can already see leading organisations responding to this shift. Programmes such as SAP's AI Bilingual Workforce initiative recognise something important. AI transformation is no longer simply about deploying technology. It is about helping every professional – whether in finance, procurement, operations or HR – develop the confidence and capability to work effectively alongside AI. Because organisations do not succeed simply because they deploy AI. They succeed because they develop people who know how to use AI to solve meaningful problems. That is what real transformation looks like.

25. If this is where the world is heading, then we need to answer some important questions together.

    1. How will expertise be built when AI changes the traditional apprenticeship model?

    2. How should organisations create value when AI makes many forms of execution dramatically easier?

    3. How should we prepare people for careers that will continue evolving throughout their working lives?

26. None of us has all the answers.

27. But these are exactly the questions we should be asking. And they are not questions for Government alone. They are questions for universities, for employers, for technology companies, and for every ICT professional.

28. This is why Singapore's response cannot simply be to adopt AI faster. We must also become better at developing people. If AI changes how expertise is built, then we must rethink how expertise is developed.

29. That means stronger partnerships between universities and industry. More opportunities for students to work on real-world problems. More workplace learning. More opportunities to experiment, build and learn alongside AI. More support for lifelong learning, because careers will continue to evolve throughout our lives.

30. Initiatives such as the TIP Alliance PLUS bring together employers, education institutions, technology companies and Government to strengthen industry readiness and help people build the capabilities needed for this new era. Our objective is not simply to help someone secure their first job. It is to help people build careers that remain relevant through many waves of technological change.

31. So let me end where I began. Every generation of technology professionals inherits a different challenge. My generation helped build Singapore's digital economy. Your generation has the opportunity to shape the AI economy for your country and for the region. Not simply by deploying AI, but by deciding how AI helps businesses innovate.

    1. How it strengthens industries.

    2. How it creates better jobs.

    3. How it improves healthcare.

    4. How it transforms public services.

    5. And ultimately, how it improves people's lives.

32. Technology will continue to evolve. That is inevitable. The question is whether we will continue to develop the people, the organisations and the partnerships needed to make the most out of it. Because in the end, AI will not define our future. The choices we make with AI will.

33. I believe that all of you and in Singapore, we will make the right choices, and I hope every one of you will be part of this exciting journey ahead.

34. Thank you very much.