**Singapore**: A recent EY report reveals that 54% of businesses in Singapore are investing in generative AI, with significant commitments also in IoT and 5G. However, many enterprises remain at early stages of implementation, facing challenges in bridging pilot projects to full-scale adoption.
Investment in emerging technologies in Singapore remains strong, with annual reports indicating that over half of businesses in the region are allocating resources toward generative artificial intelligence (AI). The EY report, which surveyed 1,635 businesses across 26 global markets, reveals that 54% of Singaporean companies are investing in generative AI, a figure that closely mirrors the 58% rate reported across Southeast Asia.
Additionally, the report highlights substantial investment in other technologies, with 62% of respondents in Singapore (and 63% in Southeast Asia) committing resources to the Internet of Things (IoT) and 40% (34% in Southeast Asia) now investing in 5G technology. The survey included responses from 103 firms in Southeast Asia, covering countries such as Malaysia and Indonesia, and 63 businesses operating in Singapore.
The findings illustrate a shifting trend in decision-making regarding emerging technologies. While traditional roles have been primarily held by Chief Information Officers (CIOs), who still account for 67% of decision-making in Singapore (72% in Southeast Asia), Chief Executive Officers (CEOs) are increasingly becoming involved in strategic choices, including supplier selection—a shift observed in 49% of Singaporean firms (54% for Southeast Asia).
Despite the enthusiasm for investment, the report indicates that many enterprises remain in preliminary stages regarding the deployment of these technologies. Notably, 77% of Singaporean respondents investing in generative AI are still at the proof-of-concept phase, with only 24% having advanced to pilot projects in specific business areas. The data shows that none of the participating companies have fully integrated AI into critical business and IT workflows, suggesting a disconnect between initial experimentation and broader implementation.
Joongshik Wang, leader of EY-Parthenon ASEAN and Singapore strategy and execution, commented on the findings, stating, “While enterprises are keen to invest in emerging technologies, many businesses struggle to bridge the gap between pilot and full-scale implementation.” He further elaborated that barriers such as integration challenges, unclear return on investment (ROI), and the necessity for stronger ecosystem support inhibit the translation of pilot projects into widespread application.
To address these obstacles, the study advocates for a strategic approach wherein businesses focus on cultivating in-house generative AI capabilities while simultaneously leveraging reliable vendor partnerships. However, many companies are grappling with the question of which information and communications technology (ICT) suppliers can effectively facilitate this transformational journey. In Singapore, a notable 81% of respondents express a need for enhanced understanding of the evolving supplier landscape, reflecting a significant gap in supplier ecosystem awareness.
The report also sheds light on mobile technology capabilities, revealing that while 38% of businesses in Singapore have a high awareness of network application programming interfaces (APIs), only a quarter (25%) exhibit similar awareness regarding network slicing. When characterising their ideal emerging technology vendor, a third of respondents (33% in Singapore and 36% in Southeast Asia) emphasised the importance of achieving measurable business outcomes over mere cost or technological advantages, alongside access to a robust partner ecosystem.
Moreover, integration and scalability are emerging as key factors, with close to 20% highlighting these attributes as essential criteria for supplier selection. In response to these dynamics, many enterprises are contemplating strategies to streamline their vendor engagement, with 41% of Singaporean firms (44% in Southeast Asia) intending to reduce their ICT vendor count in the next year. This trend appears to be motivated by efforts to enhance security and compliance, decrease technology-related expenditures, and simplify operational complexity.
The findings from the EY report underscore a comprehensive picture of the current landscape of technology investment in Singapore, denoting both ambition and caution as businesses navigate the complexities inherent to the adoption of emerging technologies.
Source: Noah Wire Services
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