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Singapore leads in shadow AI usage

Newsflash Asia

- November 28, 2025

Singaporean businesses are at the forefront of shadow AI usage, according to a new survey by ABBYY. The report, titled “State of Intelligent Automation: GenAI Confessions”, highlights the challenges faced by business leaders in implementing generative AI (GenAI) technology. The survey, conducted by Opinium Research, found that 40% of Singaporean business leaders encountered difficulties in training GenAI models and integrating them into business processes. Additionally, 30% cited cost concerns, 28% lacked proper governance, and 25% experienced issues with hallucinations—incorrect information provided by AI.

To address these challenges, many businesses have turned to complementary technologies. The survey revealed that 41% of leaders are using AI agents, 42% are employing process intelligence, 47% are utilising Document AI, and 34% have introduced retrieval augmented generation. These measures have reportedly led to improved trust, accuracy, and cost savings, with 99% of businesses noting better consistency and integration into workflows.

Maxime Vermeir, Senior Director of AI at ABBYY, emphasised the importance of evaluating current processes before adopting GenAI tools. “Businesses are spending money on GenAI tools that promise more than they can provide,” he stated. The survey also uncovered that 26% of Singaporean leaders reported shadow AI usage, where employees independently use AI tools for personal productivity, a figure higher than in the US, UK, and other countries.

The findings suggest a shift towards pragmatic investment in GenAI, with 99% of respondents planning to increase their budgets. This reflects a mature approach to GenAI adoption, focusing on secure and strategic implementation.

This story was selected and published by a human editor, with content adapted from original press material using AI tools. Spot an error? Report it here.

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