Artificial intelligence (AI) is reshaping economies and industries, with Singapore among the leading nations. Based on "The AI Maturity Matrix", developed by Boston Consulting Group (BCG), Singapore has successfully positioned itself as one of five AI Pioneers, leading the charge with a globally AI-ready economy.
Singapore's approach to AI goes beyond just investing in technology. The nation's AI strategy is defined by its foresight in anticipating future trends and its proactive, decisive actions. With a forward-thinking government and a highly skilled workforce, Singapore is building an AI ecosystem that encourages adoption and innovation.
While many nations, governments, and businesses are still exploring how to accelerate AI, Singapore has already laid the groundwork for an AI-powered ecosystem that drives innovation, collaboration, and commercial success. Unlike many nations still shaping their AI vision, Singapore has shifted its focus to execution, backed by strong government initiatives like the National AI Strategy, AI Singapore's (AISG) 100 Experiments, the AI Apprenticeship Programme (AIAP) and TechSkills Accelerator (TeSA).
The nation has long recognised that to build an AI-ready economy, you need a workforce equipped with the right skills. Singapore-based companies are aggressively investing in upskilling initiatives. BCG's research reveals that 44% of local companies are training a quarter of their workforce in AI and Generative AI (GenAI) tools, 15 percentage points (ppts) above the global average.
True AI leadership relies on how companies adopt and integrate AI into their operations at scale. Are Singapore-based companies capitalising on these opportunities, or is there a gap between vision and execution? A recent study by BCG revealed where Singapore-based companies stand on AI adoption and what it will take to turn intent into impact.
The reality of AI adoption
AI has become a crucial part of corporate strategies. Based on BCG's recent survey, 80% of Singapore-based companies rank AI/GenAI among their top three strategic priorities for 2025, 5 ppts above the global average.
See also: DBS cracks the code to industrialising AI
Companies are continuing to invest in AI opportunities, with at least 37% of Singapore-based companies planning to spend US$25 million ($32.77 million) or more on AI in 2025.
This investment commitment is also seen in the fact that over half (57%) of businesses are allocating more than 10% of their tech budgets towards AI-driven initiatives. These figures reflect the broader ambition of Singaporean companies, where businesses see AI as a competitive differentiator.
However, companies should be encouraged to move beyond simple proof of concepts and address the need to truly scale AI adoption. There is a greater call for high-impact use-case selection, and this will determine how well Singapore-based companies are able to integrate AI into their operations.
See also: Safeguarding elections in the age of artificial intelligence
What's holding Singapore-based companies back?
Despite the strides Singapore has made as a nation, many companies continue to face challenges in execution. This is largely due to the lack of technical talent required to scale AI effectively, with 70% of companies citing technical expertise as one of the major workforce gaps, particularly in deep learning, AI ethics and large language model operations (LLMOps).
Singapore-based companies are struggling to convert experimentation into enterprise-wide transformation, with 70% of organisations unable to scale AI beyond proof of concepts. As a result, a majority (80%) of companies in Singapore tend to channel their investments into individual use cases rather than driving business-wide impact. This makes it difficult to measure return on investment (ROI) and justify further investment, with 70% of companies struggling to define and track financial KPIs tied to AI value creation.
On a global scale, over 80% of companies channel their AI investments into reshaping critical functions and inventing new products and services. Yet, just under half (about 40%) of the companies in Singapore still focus on small-scale productivity enhancements, instead of creating new revenue streams. Global leaders are already leveraging AI for entirely new business models, and Singaporean firms must follow suit.
The only way to do this is to scale beyond AI pilot projects to enterprise or even industry-wide adoption. However, decentralised AI initiatives that lack a central AI officer or an AI governance board can hinder this, resulting in fragmented efforts and stalled projects. Without a clear framework for AI integration, businesses will struggle to effectively scale AI across different units.
Despite strong government support, it is clear that Singapore-based companies can do more to fully capitalise on the nation's AI potential. Businesses should take more proactive approaches to overcoming talent shortages, poorly targeted investments, and the complexities of scaling AI.
Bridging the AI execution
Singapore-based businesses must rethink the possibilities of AI, moving beyond isolated pilot programmes to create new revenue streams. This means closing the AI imagination gap and making bold moves to reinvent business models and value creation.
To do this, companies should focus on high-impact opportunities, prioritising a few transformative use cases that can demonstrate true value rather than fragmented efforts. AI and GenAI tools must also be deeply integrated into strategic planning with clear KPIs that measure value.
Sink your teeth into in-depth insights from our contributors, and dive into financial and economic trends
Successful AI adoption hinges on good leadership. Businesses must be willing to lead cultural and organisational change, with leaders personally committing to foster collaboration.
Through cross-functional collaboration, Singapore-based firms will be able to anticipate the next wave of AI advancements and the risks that come with them.
Can the next era of AI begin in Singapore?
Singapore is setting the global standard for AI readiness. Backed by supportive government policies, corporate ambition, and a collaborative innovation ecosystem, Singapore is well-positioned to remain at the forefront of AI transformation.
Companies are already investing positively in the future. But to build greater global leadership, companies must now drive large-scale AI adoption, moving beyond small-scale use cases to focus on high-impact use cases that create real business value. This requires bold leadership, with encouraging early signs that Singapore-based companies are on the right track to shape the next wave of AI-driven growth.
Hanno Stegmann is managing director & partner at BCG X; Harish Koundinya is partner at BCG
