Small and medium-sized enterprises (SMEs) are keen to adopt artificial intelligence (AI) but face hurdles in moving beyond pilot projects, a recent poll by UOB has revealed. Conducted during a SkillsFuture Queen Bee Masterclass, part of the UOB SME Elevate Programme, the poll surveyed 100 attendees, including business owners and industry leaders, highlighting the challenges and priorities of SMEs in Singapore.
The poll found that whilst 55% of respondents are exploring or piloting AI solutions, only 6% have successfully integrated AI into their operations. Rising operating costs were identified as the top business challenge by 30% of respondents, with improving profitability (29%) and increasing sales (28%) following closely. Adrien Desbaillets, CEO and co-founder of SaladStop, noted, “Margins have compressed to a point where expansion is genuinely difficult for most operators.”
UOB is addressing these challenges through initiatives like the UOB SME Elevate Programme and UOB BizSmart, which aim to enhance productivity and streamline operations. These programmes offer digital tools, such as zero transaction fees for PayNow collections, and grant support for F&B companies. Additionally, UOB FinLab provides upskilling opportunities in AI, digitalisation, and sustainability.
Paul Kan, Country Head of SME Banking at UOB, emphasised the importance of building capabilities for the next phase of SME transformation. “We help SMEs build capabilities, access digital solutions, and secure the support they need to transform with confidence,” he stated.
The findings underscore the need for practical support to help SMEs move beyond experimentation and achieve tangible business outcomes, as they continue to focus on improving profitability and managing costs in a competitive environment.
