Singapore enterprises are deploying AI agents at the highest rate in Asia-Pacific, yet are also among the most likely to pull them back after going live, according to new research by communications tech company Sinch.
The report, titled The AI Production Paradox, found that 82 per cent of Singapore enterprises have rolled back or shut down a deployed AI agent, a rate eight percentage points above the global average. The finding is particularly striking given that Singapore simultaneously recorded the highest AI agent deployment rate in APAC at 72 per cent.
The study, based on an independent survey of 2,527 senior decision-makers across 10 countries and six industries, suggests that for many enterprises the central challenge around AI agents has shifted — from getting them into production to keeping them there.
“The real risk across APAC isn’t moving slowly, it’s scaling on infrastructure that can’t keep up,” said Wendy Johnstone, Executive Vice President, APAC at Sinch.
A regional pattern of high deployment, high failure
Singapore’s experience reflects a broader trend across Asia-Pacific. The region recorded the highest AI agent deployment rate globally, with 67 per cent of enterprises already operating AI agents in production — five percentage points above the global average. Yet 83 per cent of APAC enterprises have experienced an AI agent failure, the highest failure rate of any region surveyed and nine points above the global average.
Among the most immediate operational consequences, 45 per cent of APAC enterprises cited support team overload as the primary outcome when an AI agent fails. In Singapore, 44 per cent of enterprises reported the same. Given that one in three APAC enterprises sends more than 100 million messages per month, even a contained AI agent failure carries the potential to escalate quickly into broader disruption affecting customer satisfaction and brand trust.
Governance gap persists despite compliance focus
Despite 75 per cent of Singapore enterprises prioritising investment in trust, security and compliance, the research identified a significant governance shortfall. Only 27 per cent of Singapore enterprises report fully mature guardrails — the lowest figure in APAC and well below the global average of 35 per cent.
Across the region, the link between governance and AI advancement was found to be 48 per cent stronger than the global average, with enterprises that established proper governance before deployment recording better outcomes.
The research points to communications infrastructure as a critical but underserved factor in AI agent success. While 82 per cent of Singapore organisations rated high-performance infrastructure as essential or very important, just seven per cent said their current provider was fully meeting their needs — one of the lowest satisfaction figures among all markets surveyed.
As a result, 91 per cent of Singapore enterprises are currently evaluating new communications providers, five percentage points above the global average. On average, Singapore enterprises are planning AI agent deployment across 3.1 channels, with WhatsApp and web-based chatbots among the most common integration points.
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Notwithstanding the challenges, AI agents remain a clear priority. Some 40 per cent of Singapore enterprises plan to increase AI investment by more than 25 per cent compared to the prior year, with businesses focusing on selective, sustainable expansion rather than rapid scaling.
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