A recent study by IBM’s Institute for Business Value highlights a significant gap between AI ambitions and execution among Singaporean businesses. The study, which surveyed 2,000 CEOs globally, including 210 from Singapore and ASEAN, found that whilst AI investment is set to more than double in the next two years, only 14% of Singaporean firms have managed to scale AI initiatives across their entire enterprise.
The report reveals that 80% of Singaporean CEOs prioritise AI projects based on return on investment (ROI), yet only 23% have achieved the expected returns. This indicates a disconnect between investment priorities and realised outcomes. Additionally, 52% of CEOs acknowledge that rapid tech investments have resulted in fragmented technology stacks, complicating AI integration.
Abraham Thomas, Managing Partner at IBM Consulting ASEAN, noted, “Business leaders in ASEAN are under pressure to demonstrate ROI from AI whilst needing to invest in long-term capabilities to stay competitive.” He emphasised the importance of building adaptable data foundations and investing in talent to turn AI ambitions into tangible results.
The study also highlights the need for strategic leadership and specialised talent, with 75% of Singaporean CEOs linking organisational success to having a broad group of leaders with strategic insight. Furthermore, 48% of firms are hiring for AI roles that did not exist a year ago, reflecting the evolving landscape of AI expertise.
In conclusion, whilst Singaporean businesses are investing heavily in AI, the challenge remains to effectively scale these initiatives and realise their full potential. The findings suggest a need for improved data infrastructure and strategic talent development to bridge the gap between AI ambition and execution.
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