Research commissioned by Deel uncovers a complex reality slowing the city-state’s digital ambition.
The survey, conducted by Milieu Insight in April 2025, captured responses from 350 Singapore-based business leaders and managers across both SMEs and large enterprises.
While many Singapore businesses recognise the potential of AI to drive efficiency and productivity, adoption remains cautious and uneven, and is increasingly impacted by global economic turbulence and a persistent shortage of skilled talent.
Singapore’s government has set ambitious plans for AI, with robust strategies and frameworks in place to drive adoption. However, the survey reveals a disconnect between what businesses say they need and their actual engagement with existing government initiatives.
The majority of survey respondents (92%) view government support as crucial for AI adoption with financial support (42%), talent development and upskilling (26%) as well as technical or advisory support (15%) cited as their top support needs.
Another concern businesses have when it comes to AI is government regulations. But while 57% of survey respondents said they want stronger regulatory guardrails, actual engagement with existing government proposals and frameworks remains limited.
A mere 5% said they are actively engaging with Singapore’s National AI Strategy (NAIS 2.0), and 95% of respondents said they are unfamiliar or only mildly familiar with Singapore’s AI governance framework.
This gap is particularly stark given the increasing complexity and risks associated with AI deployment.
A call for strategic action
The data highlights both the urgency and the complexity of the challenge – AI is seen as a solution to economic shocks, yet barriers persist that prevent its widespread, effective adoption.
Catino concluded, “With economic uncertainty and tariff pressures mounting, Singaporean businesses should ensure AI investments deliver tangible results in productivity, efficiency and margin resilience.
“The path forward requires a strategic approach – carefully evaluating whether to overhaul existing systems or leverage trusted AI solutions from vendors, and investing in talent development to future-proof operations.”
