AI spending climbs 33% as digital readiness falls to 24%

Legacy systems and skills gaps slow AI deployment despite higher ROI.

Singapore businesses have raised AI spending by an average of 33% over the past year, yet only 24% say they are prepared to manage future risks, according to Kyndryl’s 2025 Readiness Report.

The study found that 53% of local AI initiatives remain in pilot stages, even as global organisations report stronger returns.

More than half of the 100 respondents from Singapore (58%) said that they struggle to keep pace with technological change. In addition, 68% report their technology stack is not equipped to support next-stage AI deployments.

70% of CEOs say their current cloud setup emerged “by accident rather than design,” with many reassessing data storage and security, according to the report. Three in four leaders globally report concerns about geopolitical risks tied to cloud environments, prompting adjustments to infrastructure strategies.

Workforce capability remains uneven. Although 87% of executives globally expect AI to reshape roles within 12 months, only 26% of Singapore respondents consider their employees sufficiently skilled to use AI tools.

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