Singapore Businesses Lead Global AI Adoption by 26%

Singapore businesses are betting big on artificial intelligence, and the numbers prove they're ahead of the curve.

A global PwC study released this week found that 67% of Singapore companies are willing to take risks when investing in AI, compared to just 41% of businesses worldwide. That 26-point confidence gap signals something special happening in the city-state's business community.

The research, which surveyed more than 1,200 senior executives between July and September 2025, included 30 Singapore-based companies with revenues exceeding $100 million. The local respondents came primarily from banking, capital markets, and technology sectors.

Singapore firms aren't just talking about AI. They're deploying it in ways that set them apart from global competitors.

Nearly half of local businesses (43%) use AI to compete against companies outside their own industries, more than double the 20% global average. And while 37% of companies worldwide still limit AI to basic tasks like analysis and prediction, only 20% of Singapore firms stick to these simpler applications.

Instead, Singapore businesses are pushing into advanced territory. About 17% are using AI for autonomous and self-optimizing operations, more than double the 8% global rate.

The infrastructure story reinforces this advantage. Three in ten Singapore companies have already eliminated outdated IT systems, well ahead of the 18% globally who've taken that crucial step.

But the study reveals room for growth. Singapore businesses trail AI leaders in four critical areas: governance and risk management, data quality, workflow redesign, and value creation.

Just over half of Singapore firms (53%) have robust security protecting their AI systems, compared to 69% of global AI leaders. Only 47% have documented responsible AI frameworks in place, versus 63% among top performers.

Data management shows similar gaps. Just 37% of Singapore businesses maintain a single trusted record of critical data, compared to 59% of AI leaders.

The Ripple Effect

The timing couldn't be better for Singapore to address these challenges. Budget 2026 just announced a National AI Council and AI missions across advanced manufacturing, connectivity, finance, and healthcare, backed by regulatory sandboxes and enhanced tax incentives.

The Infocomm Media Development Authority and AI Verify Foundation are already testing global AI assurance programs, helping organizations strengthen trust at scale. These national initiatives create the perfect runway for businesses ready to level up their AI operations.

The payoff for getting it right is substantial. Companies in the top 20% of AI performance achieve 7.2 times more revenue and efficiency gains than their peers, the study found. These leaders invest 2.5 times more in AI and are twice as likely to deploy it across all business functions.

Anthony Dias, AI Hub Leader at PwC Singapore, emphasized that governance must come first. "Singapore businesses can start by looking at the governance and risk dimension," he said. "It is foundational to sustained AI performance."

The national environment is becoming more supportive, but individual companies still need to act on what the data shows. With strong government backing and proven business appetite for innovation, Singapore has everything it needs to close the remaining gaps and cement its status as a global AI hub.