Singapore is at the forefront of Shadow AI usage, with 26% of business leaders reporting employees using generative AI (GenAI) tools without oversight, according to ABBYY’s latest report.
The 2025 State of Intelligent Automation: GenAI Disillusionment survey highlights the hurdles Singaporean businesses encounter, including high costs, governance issues, and incorrect outputs, often referred to as “hallucinations.”
The survey, conducted by Opinium Research and commissioned by ABBYY, reveals that 40% of Singaporean leaders find training GenAI models more challenging than anticipated. Additionally, 30% cite cost concerns, whilst 28% point to governance gaps. To address these challenges, many businesses are turning to other AI technologies, with 47% using Document AI and 42% employing Process Intelligence.
Maxime Vermeir, Senior Director of AI Strategy at ABBYY, noted, “Businesses are spending money on GenAI tools that promise more than they can provide. In some cases, they don’t even need it.” He emphasised the importance of evaluating current processes before adopting GenAI tools.
The report also highlights that 99% of Singaporean businesses have seen improvements in trust, accuracy, and cost savings when complementing GenAI with process and document AI.
Furthermore, 56% of staff use GenAI to enhance their professional image, whilst 63% find it reduces workload and boosts creativity.
ABBYY’s CEO, Ulf Persson, commented on the potential risks of Shadow AI, stating, “The corporate benefits of GenAI’s potential are truly unlocked when leaders drive secure, strategic adoption with risk management as a priority.”
As Singaporean businesses mature in their approach, 99% plan to increase their GenAI budgets, with 21% expecting a 6-10% rise in funding.
