SAP Study—AI in Singapore

In the study, organizations in Singapore say they are spending an average of 14.5 million USD this year on AI and report an average return on AI investment of 16 percent—a figure expected to rise to 29 percent within two years.

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“Our research suggests that to sustain this momentum and seize the next wave of AI innovation, Singaporean organizations will have to bridge their reported gaps in data readiness and workforce capability.”

Eileen Chua,
Managing Director,
SAP Singapore.

“Spurred by strong policy direction, high digital maturity and a globally connected economy, Singapore has moved decisively on AI ambition and investment,” said Eileen Chua, Managing Director, SAP Singapore. “Our research suggests that to sustain this momentum and seize the next wave of AI innovation, Singaporean organizations will have to bridge their reported gaps in data readiness and workforce capability.”

AI investment and adoption vs. readiness

According to the report, organizations in Singapore expect to increase AI-related spending by an average of 38 percent over the next two years. A majority of respondents (67 percent) report satisfaction with their current return on investment from AI, and 63 percent say AI has contributed to addressing operational challenges, including decision-making and customer engagement.

At the same time, 70 percent of business leaders indicate uncertainty about whether AI initiatives are delivering their full potential. This suggests that while early results are generally positive, many organizations remain cautious about the long-term impact and scalability of their AI investments.

Organizational readiness continues to present challenges. The study found that 76 percent of organizations in Singapore have not yet implemented comprehensive AI training for employees. In parallel, 68 percent acknowledge the internal use of unapproved or unregulated AI tools, often referred to as shadow AI.

Data integration also remains a concern. Overall, 58 percent of respondents lack confidence in their ability to integrate and share data across business functions, which is a key requirement for enterprise-wide AI adoption. Data readiness challenges are particularly evident in legal (80 percent), finance (73 percent), human resources (66 percent), the CEO’s office (64 percent), and procurement (55 percent).

Agentic AI

While many organizations are currently using AI automation and generative AI, future investments in Singapore are expected to increasingly include AI agents. Agentic AI refers to systems designed to operate with a degree of autonomy, including the ability to plan actions and coordinate tasks.

Currently, only 6 percent of respondents say they are fully prepared to deploy and scale AI agents, while 52 percent say they are partially prepared. Over the next two years, companies in Singapore expect an average return on investment of 8 percent from agent-based AI, compared to a global average of 10 percent.

Despite these figures, expectations remain relatively high. 70 percent of respondents rate the potential of AI agents to influence company processes as moderate to high, and 72 percent believe that they could create added value by supporting complex workflows in various business areas.

„Agentic AI is an emerging area of interest for many companies,“ says Chua. „Its effectiveness depends on factors such as data quality, system integration and workforce readiness. Companies that address these foundational elements are likely to be in a better position to assess and realize value as AI capabilities evolve.“

Source: SAP