Singapore’s small and medium enterprises (SMEs) are increasingly using artificial intelligence (AI) to reclaim time lost to administrative tasks, according to a new report by Xero, a global small business platform. The study, which surveyed over 1,000 local SME decision-makers, reveals that 76% of leadership and finance teams lose between three to more than 10 hours weekly to manual tasks. AI is helping these businesses redirect that time towards growth strategies, market expansion, and product innovation.
The report highlights that 46% of SMEs are investing AI-reclaimed hours into growth strategies, whilst 38% focus on product and service innovation. However, scaling AI remains a challenge, with 31% of businesses citing poor data quality as a barrier to moving AI pilots into regular production. Only 18% of SMEs feel confident that their current software provides sufficient context for automated decision-making.
Despite these challenges, the outlook remains positive. A significant 82% of SMEs report that AI returns have met or exceeded expectations, and 69% plan to increase AI spending over the next year. Government support plays a crucial role, with 63% of SMEs leveraging digital grants for technology deployment and training.
Koren Wines, Managing Director of Xero APAC, noted, “The real dividend of AI isn’t simply doing the same work faster. It’s the capacity it gives back, and business owners are clear they’d reinvest that time in growth, innovation, and their people.”
As AI adoption matures, SMEs are urged to focus on improving data readiness, connecting systems, and managing transition costs to fully harness AI’s potential.
