Amazon Web Services (AWS) has revealed a significant rise in artificial intelligence (AI) adoption among Singaporean businesses, with 170,000 companies now utilising AI—a 20% increase from the previous year. The study, titled “Unlocking Singapore’s AI Potential,” surveyed 1,000 business leaders and 1,000 members of the public, highlighting that 48% of businesses have embraced AI technology.
AI adoption is most prevalent in the financial services sector, with 71% of companies using AI, followed closely by the technology sector at 70% and healthcare at 63%. The report indicates that 82% of AI-adopting businesses have seen revenue increases, averaging 19%, and 90% have reported significant productivity improvements. However, the study also notes that 65% of businesses are still focused on basic AI applications, with only 17% reaching advanced integration levels.
A notable gap exists between startups and large enterprises in AI innovation. Whilst 82% of startups are using AI, with 42% developing new AI-driven products, only 16% of large enterprises are doing the same. This disparity could influence Singapore’s economic landscape, as startups push forward with innovative AI solutions.
Skills shortages remain a barrier, with 43% of businesses citing a lack of skilled personnel as a hindrance to further AI adoption. To address this, 30% of companies have implemented AI-specific training programmes, with 40% of employees undergoing digital training in the past year.
Priscilla Chong, AWS Country Manager for Singapore, emphasised the need for deeper AI integration, stating, “Singapore stands at a critical inflection point where early AI adoption success must now translate into deeper integration—moving from experimentation to being AI-powered.” AWS has launched Amazon Bedrock AgentCore in Singapore to help businesses overcome skills and implementation barriers, facilitating the transition from basic to advanced AI adoption.
