Singapore AI Adoption Lags: 71% of Firms Yet to Embrace Tech Despite Global Leadership Hopes

A landmark report from Singapore's Ministry of Manpower (MOM) reveals that 71.5% of local firms have not yet adopted artificial intelligence.30

Conducted between January and March 2026 with 2,560 firms employing nearly 500,000 workers, the survey highlights AI use at just 28.5%, mostly in planning or piloting stages.32

Uneven Progress by Firm Size

Adoption rates vary sharply, with only 23.9% of firms under 25 employees using AI compared to 76.4% of those with over 500 staff.

Among adopters, a mere 3.8% have embedded AI into core processes, signaling early-stage integration overall.

Government's Ambitious AI Push

Singapore's Budget 2026 launched national AI Missions targeting healthcare, finance, manufacturing, and connectivity to accelerate uptake.

These initiatives aim to bridge gaps, especially for small and medium enterprises (SMEs) facing skills shortages and resource constraints.

Contrasting business caution, Singapore ranks second globally in personal AI use at 60.9%, driven by high digital literacy and early investments.

This disparity underscores a non-obvious challenge: while citizens experiment freely, firms risk falling behind regional peers like Indonesia in scaled AI deployment.

Early data suggests AI boosts productivity without widespread job losses, positioning it as a tool for augmentation rather than replacement.

Industry implications loom large, as lagging SME adoption could hinder Singapore's goal of becoming an AI hub amid Southeast Asia's faster regional scaling.

Looking ahead, targeted training and incentives may propel firms toward maturity, ensuring economic resilience for everyday workers and families.

For the layman, this means potential for smarter services and job evolution, but only if businesses catch up to keep Singapore competitive.