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AI complexity undermines Singapore firms’ ROI confidence

Singapore enterprises are rapidly adopting artificial intelligence (AI), with 96% of organisations reporting some level of AI use, according to new research from Hitachi Vantara. However, the study reveals a significant gap in confidence regarding long-term returns, with only 23% of respondents rating their organisation as industry-leading in achieving return on investment (ROI) from AI.

The findings, part of the Hitachi Vantara State of Data Infrastructure 2025 Report, highlight that whilst nearly two-thirds of Singapore firms have seen early success with AI, many remain uncertain about sustaining these gains. This uncertainty is attributed to growing data complexity and security challenges that threaten to undermine long-term value.

The report surveyed over 1,200 C-level executives and senior IT leaders across 15 markets, including 51 respondents from Singapore. It underscores the strategic risks posed by data complexity, with 52% of Singapore respondents acknowledging that their data’s complexity makes it difficult to detect security breaches. Furthermore, 64% expressed concern that if leadership fully understood their data infrastructure’s fragility, it would be a significant worry.

Joe Ong, Vice President and General Manager for ASEAN at Hitachi Vantara, noted, “AI success is no longer about experimentation alone. It depends on whether data environments are resilient, governed, and trusted.”

As AI investment accelerates, the ability to simplify data environments and strengthen governance will be crucial for Singapore firms to transition from early success to sustained value. The research suggests that whilst AI adoption is high, addressing data complexity and security risks is essential to achieving long-term business value.

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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