NYP's AI Lab Deploys Student Talent to Tackle SME Digital Divide

SINGAPORE – January 07, 2026 – In a strategic move to democratize artificial intelligence for the backbone of Singapore's economy, Nanyang Polytechnic (NYP) has officially launched its AI Nexus Lab. This initiative, built on Amazon Web Services (AWS) cloud infrastructure, aims to dismantle the barriers preventing Small and Medium-sized Enterprises (SMEs) from adopting cutting-edge technology by pairing them with the next generation of digital talent.

The lab serves as a dynamic hub where business challenges meet academic ingenuity. SMEs, often daunted by the cost and complexity of AI, can now access a pipeline of practical solutions developed by NYP students, who in turn gain invaluable, real-world experience that transcends traditional classroom learning.

Bridging the AI Gap for Small Business

For many Singaporean SMEs, the promise of AI has been overshadowed by practical hurdles. While AI adoption among these businesses tripled to 14.5% in 2024, they still lag significantly behind larger corporations, where over 62% have integrated AI. The primary obstacles remain consistent: high implementation costs, a lack of in-house expertise, and the difficulty of finding off-the-shelf solutions that fit their unique operational needs.

The AI Nexus Lab is designed to directly address this gap. NYP aims to engage 500 SMEs over the next five years, starting with workshops on topics like generative AI to demystify the technology. A successful pilot program with the Singapore Chinese Chamber of Commerce & Industry (SCCCI) has already identified 64 potential use cases from its network, signaling a strong demand for such a service.

"AI may seem daunting to organisations who do not know where to start," said Dr Phua Chee Teck, Deputy Principal (Sustainability & Technology) at NYP. "The AI Nexus Lab serves as a one-stop solution bridging education and innovation, helping SMEs embrace AI with confidence. When they come to us with a business need, our learners can analyse their challenges and develop practical AI solutions that they can scale."

The process is collaborative. Through AI and design thinking workshops, NYP staff and students work with business owners to pinpoint specific problems. Learners then get to work developing proof-of-concepts and Minimum Viable Products (MVPs), utilizing the same powerful AWS services that drive global enterprises.

From Classroom Theory to Commercial Reality

The tangible impact of this model is already evident. Auto Machinery Singapore (AMS), a leading retailer of motorcycle spare parts, faced a classic digitalization challenge: its vast inventory was documented in cumbersome physical catalogues. Finding a specific part was a time-consuming manual process that hampered efficiency.

Through the NYP initiative, Teo Yu Xiang, a second-year Diploma in Information Technology student, was tasked with the problem. He developed an optical character recognition (OCR) and data analytics system that scans the printed catalogues, converts the text into digital data, and creates a fully searchable online platform. Now, staff can find any part in seconds using simple keyword searches.

The results have been transformative for the traditional business. "The solution has delivered productivity gains of over 16% and saves us approximately 180 man-hours monthly by eliminating tedious manual searches," said Danny Hoe, Director of AMS. The project's success has since evolved into a new startup, AM Digiparts Pte Ltd, co-founded by the student developer and AMS. The company is now scaling the solution through pilot programs with motorcycle repair shops across Singapore.

Hoe added, "We're now expanding our digital ecosystem to include established partners across the local motorcycle industry. This project proves that with the right talent and tools, traditional businesses can successfully harness AI for transformation."

A National Blueprint for Innovation

The AI Nexus Lab is not an isolated effort but a key component of Singapore's broader national strategy to build an inclusive and resilient AI-powered economy. The model of leveraging polytechnic talent is being championed across the island, with similar Applied AI programmes established at other institutions of higher learning, often in partnership with government agencies like Enterprise Singapore.

A powerful ecosystem of support surrounds these projects. SMEs that choose to productionise student-built MVPs can receive backing from the AWS AI Springboard initiative, which offers cloud credits and training. They can also tap into the AWS Partner Network for deep technical expertise to help them scale their new digital capabilities.

Furthermore, financial barriers are significantly lowered by government support. SMEs working with the AI Nexus Lab can access subsidies of up to 90% through SkillsFuture Singapore's Mentorship Support Grant (MSG), accelerating their journey from a pilot project to full-scale implementation. This multi-pronged support structure—combining student talent, corporate technology, and public funding—creates a fertile ground for SME innovation.

"Upskilling and exposure to AI should start from the earliest ages," commented Elsie Tan, Country Manager for Worldwide Public Sector, Singapore, at AWS. "When students can build, iterate, and ultimately create solutions that transform actual businesses, that's when true learning happens. This hands-on approach prepares them not just for their first job, but for a lifetime of adapting to technological change."

Cultivating a Future-Ready Workforce

Beyond the immediate benefits for SMEs, the long-term prize is the cultivation of a deeply skilled, industry-ready workforce. Annually, over 1,000 students from NYP's School of Information Technology will benefit from the partnership, with AWS's AI and machine learning solutions integrated directly into their curriculum. The Memorandum of Understanding (MOU) signed between NYP and AWS in September 2025 formalizes this joint commitment.

By working on real projects with real clients, students gain more than just technical proficiency. They learn to navigate business constraints, communicate with stakeholders, and develop an entrepreneurial mindset—competencies that are in high demand but difficult to teach through lectures alone. These projects become flagship entries in their professional portfolios, positioning them for leading roles in the digital economy.

As NYP expands its partnerships with other trade associations, the pipeline of industry challenges will grow, extending the benefits of AI adoption across various sectors. This symbiotic relationship, where businesses get practical solutions and students get practical experience, creates a virtuous cycle that strengthens Singapore's entire economic ecosystem, ensuring that its workforce and its businesses are well-prepared for the future of work.