
While Singapore’s corporate sector is moving faster on artificial intelligence (AI) than much of the world, a new PwC study suggests the country’s ambition to become an AI hub will depend less on enthusiasm and more on whether companies can fix the unglamorous foundations that turn AI spending into business results.
The headline numbers are strong. According to PwC’s Global AI Survey 2026, 67 per cent of Singapore businesses surveyed said they have a higher appetite for risk when investing in AI, compared with 41 per cent globally. Another 63 per cent said they allocate people and funding based on AI opportunities, above the global average of 51 per cent.
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That points to a market where artificial intelligence is no longer being treated as a side experiment. In many companies, it is increasingly influencing resource allocation, strategic planning, and competitive positioning.
The survey, conducted between July and September 2025, polled 1,217 senior executives worldwide. The Singapore sample was far smaller, comprising 30 respondents from publicly listed companies with annual revenue above US$100 million. Even so, the local figures reinforce the view that Singapore’s large enterprises are leaning into AI more aggressively than peers elsewhere.
Beyond pilots and buzzwords
One of the clearest signs of that shift is how Singapore companies are using AI to push beyond their traditional markets. The study found that 43 per cent of local respondents are deploying artificial intelligence to compete outside their sector, compared with 20 per cent globally.
That matters because it suggests AI is being used not just to optimise operations, but to reshape how companies think about growth. In practice, this could mean banks behaving more like software companies, manufacturers building data-driven services, or incumbents using AI to enter spaces that previously sat outside their core business.
Singapore also appears to be moving faster on the less visible infrastructure work that often determines whether AI projects scale or stall. Thirty per cent of respondents said their organisations have eliminated outdated IT infrastructure, versus 18 per cent globally.
Legacy systems rarely grab headlines, but they are one of the main reasons AI efforts remain trapped in pilot mode. Companies cannot scale advanced AI if their data is fragmented, their systems cannot integrate, or their infrastructure is too old to support modern workloads. On that front, Singapore seems ahead of the curve.
The study also suggests local businesses are pushing into more advanced AI deployments. Globally, 37 per cent of companies are still focused on relatively basic applications such as analysis, prediction and recommendation. In Singapore, that figure is just 20 per cent. Meanwhile, 17 per cent of Singapore respondents said they are using AI in autonomous or self-optimising ways, compared with 8 per cent globally.
That indicates a market that is beginning to move from AI as a support tool towards AI as an operating layer embedded in decision-making and workflows.
The gap with global AI leaders
Still, the bigger story lies in what happens when Singapore is compared not with the global average, but with the top 20 per cent of companies in PwC’s study, classified as “AI leaders”.
These firms are generating 7.2 times more AI-driven revenue and efficiency gains than peers on an industry-adjusted basis. They are also 2.5 times more likely to invest heavily, 2.4 times more likely to maintain reusable AI components across the organisation, and 1.7 times more likely to have high-quality data readily available for priority artificial intelligence applications.
In other words, the companies pulling ahead are not simply spending more. They are building stronger operating foundations, reusing what works, and aligning AI efforts with real business priorities.
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That is where Singapore’s weaknesses become clearer.
Only 53 per cent of Singapore businesses surveyed said they have robust, up-to-date security in place to protect data, AI models and infrastructure. Among AI leaders, that figure rises to 69 per cent. Just 47 per cent of Singapore respondents have a documented responsible AI framework, compared with 63 per cent of AI leaders, while only 43 per cent have a cross-functional AI governance board, versus 64 per cent among top performers.
The gaps extend to data. Just 37 per cent of Singapore firms said they maintain a single, trusted record of critical data, and 40 per cent said they use structured data effectively. Among AI leaders, those figures stand at 59 per cent and 60 per cent respectively.
Workflow redesign is another weak point. Only 37 per cent of Singapore companies said they had redesigned workflows to integrate AI rather than simply layering tools onto existing processes. Among AI leaders, 56 per cent had done so.
That shortfall is significant. AI rarely delivers meaningful gains by being bolted on top of old systems and ways of working. Its value tends to emerge when companies rethink processes from the ground up.
Policy support is growing, but companies still have to deliver
The findings arrive as Singapore steps up its national AI agenda. In 2025, IMDA and the AI Verify Foundation expanded efforts to build trust in generative AI through the Global AI Assurance Pilot. Budget 2026 added further momentum with a National AI Council, AI missions in advanced manufacturing, connectivity, finance and healthcare, as well as regulatory sandboxes and tax incentives.
That policy push strengthens Singapore’s position as a serious AI market. But it does not close the execution gap inside companies.
Anthony Dias, AI Hub Leader at PwC Singapore, said the best performers are distinguished not by the size of their spend, but by how deliberately they deploy artificial intelligence . “The companies achieving the highest AI-driven returns globally are distinguished not by how much they spend, but by how deliberately they operate: making targeted choices about where AI creates value, embedding it into core workflows, and scaling what works consistently across the enterprise.”
That is the central challenge for Singapore. The country has momentum, capital, regulatory support, and a business community that is more AI-forward than many global peers. But hub status will not be secured by ambition alone.
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For startups, enterprise vendors and investors in Southeast Asia, the message is straightforward: the biggest opportunities may lie less in AI hype and more in solving the enterprise basics — governance, trusted data, infrastructure modernisation and workflow redesign.
Singapore has shown it is serious about AI. The next test is whether its companies can turn that seriousness into repeatable business outcomes. Right now, the country looks like a strong contender for AI hub status — but not the finished product.
The post The missing link in Singapore’s AI strategy appeared first on e27.


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