Artificial intelligence (AI) is driving productivity gains for CEOs globally, yet many struggle to translate these improvements into financial growth, according to the latest EY-Parthenon CEO Outlook Survey. The survey, which included 1,200 CEOs from 21 countries, found that 45% of Singaporean CEOs identified AI as the primary driver of productivity over the past year. However, 20% reported difficulties in converting these gains into measurable financial outcomes.
AI’s role in enhancing productivity is evident, with half of Singaporean CEOs reinvesting the additional capacity into innovation and transformation initiatives. Despite this, legacy systems and organisational complexities hinder the translation of these gains into profitability. Only 9% of Singaporean CEOs expressed strong confidence in measuring AI’s return on investment (ROI), highlighting a gap between AI adoption and value creation.
Sriram Changali, EY-Parthenon Asean and Singapore Strategy and Execution Leader, emphasised the need for CEOs to integrate AI across workflows to create customer value. “CEOs and boards need to identify AI-driven business models and value pools that drive growth,” he stated.
The survey also highlighted a looming skills shortage, with 92% of Singaporean CEOs expecting it to become a greater barrier to growth than capital access. Whilst AI is seen as a transformative force for the workforce, 60% of Singaporean CEOs admitted their organisations are not developing AI skills rapidly enough.
As CEOs focus on sustainable growth, 72% of Singaporean leaders are prioritising strengthening existing businesses over rapid market expansion. AI adoption is expanding across transactions, with 60% of Singaporean CEOs piloting AI in selected activities to enhance decision-making and deal execution. Geophin George, EY-Parthenon Asean Transactions and Corporate Finance Leader, noted, “AI’s value in transactions goes beyond informing which deals to pursue.”
