Deloitte’s latest “State of AI in the Enterprise” report reveals that Singapore is poised for significant advancements in artificial intelligence (AI) over the next two years. The report, based on a survey of over 3,000 business leaders, including 75 from Singapore, highlights the rapid growth of agentic and physical AI, with 72% of Singaporean businesses planning to deploy agentic AI and 84% expecting to use physical AI in their operations.
The report underscores a shift from AI experimentation to enterprise scaling, with 32% of Singaporean respondents having moved 40% or more of their AI pilots into production. This is above the global average of 25%. Chris Lewin, AI & Data Capability Leader at Deloitte Asia Pacific, emphasised the need for a clear roadmap to guide AI transformation, stating, “The full value of the technology will come from reimagining what is possible to achieve strategic differentiation and enduring competitive advantage.”
Agentic AI, which involves autonomous AI agents, is expected to impact customer services, supply chain management, and marketing. However, only 14% of Singaporean leaders report having a mature governance model for agentic AI, highlighting a need for improved oversight.
Physical AI, which integrates AI systems with real-world operations, is anticipated to drive industrial automation. Key applications include digital twins, collaborative robotics, and intelligent security systems. Deloitte advises businesses to ensure these solutions are secure and resilient against cyber threats.
The report also notes the importance of sovereign AI, with 77% of Singaporean businesses considering data residency and regional compute considerations crucial to their strategic planning. As AI continues to evolve, these insights provide a roadmap for businesses aiming to harness AI’s full potential.
