Businesses double agentic AI adoption, but few transform processes: study

Only 10% have rebuilt processes for AI to handle multi-step business tasks.

Singapore enterprises have more than doubled their adoption of agentic artificial intelligence (AI) tools to 51% in 2026 from 22% a year earlier, but only 10% have redesigned business processes so AI can complete multi-step tasks end-to-end, according to a ServiceNow study.

The annual Enterprise AI Maturity Index, which surveyed 4,500 senior leaders across 19 countries, including 200 in Singapore, found that 33% of Singapore enterprises use AI to assist employees with day-to-day tasks, whilst 18% have made no progress on advanced AI adoption.

CK Tan, APJ Innovation Officer at ServiceNow, said Singapore enterprises have rebuilt important foundations for AI, but adoption does not equate to transformation.

“Helping individuals work faster has value. Redesigning how work moves across the enterprise is where AI starts to change business outcomes,” Tan said.

Singapore's AI maturity score rose 19 points to 53 out of 100 in 2026, above the global average of 51 and its 2024 peak of 45. The score had fallen 11 points to 34 in 2025.

Singapore led the global average on six of seven AI maturity dimensions, with talent readiness showing the widest lead at three points. AI-enabled workflows were the only dimension where Singapore trailed the global average and remained its weakest area.

The study found that 23% of Singapore enterprises have replaced legacy technology systems with modern platforms, compared with 16% globally.

A further 28% have formal processes for testing, auditing, and managing AI risk, against 20% globally, whilst 25% have integrated AI workflows across business functions, compared with 16% globally.

Singapore enterprises increased AI budgets by 108% year on year, compared with 110% globally. AI accounted for 15.4% of IT budgets, against 15.8% globally, with both shares projected to reach about 20% by 2027.

Singapore enterprises expect AI spending to increase by 83% next year, compared with 81% globally.

“The issue is where the next dollar goes,” Tan said. “Singapore is ahead on foundations, but weaker on embedding AI into daily operations. If the next wave of investment goes mainly into tools rather than workflow redesign, the maturity gap will widen instead of close.”

ServiceNow's 2025 Singapore data found that enterprises that redesigned their work processes around AI were nearly four times more likely to report significant productivity and efficiency gains than those that added AI to existing processes.

Standard Chartered has redesigned its colleague onboarding process by mapping each step and determining where human judgement was required and where technology could add value.

The bank expects the changes to reduce onboarding effort for hiring managers by 35% and generate about 20% productivity gains across HR teams.

“Long before we deployed AI, we invested in understanding our people, their relationship with technology, appetite for change, and familiarity with AI both inside and outside the workplace,” said Melinda McKinley, Chief Operating Officer, Strategy and Talent at Standard Chartered. “When you know where friction exists and why, you can apply automation and AI with precision.”

Data privacy and security remain a concern, with 58% of Singapore enterprises identifying them as a top AI challenge.

“The governance framework Singapore has built is genuinely world-leading,” Tan said. “What the data shows is that most enterprises are still working towards what it asks of them.”

Tan Kit Yong, Chief Regional Enterprise at StarHub, said the focus has shifted from AI adoption to execution, with enterprises needing trusted digital infrastructure, unified data platforms, and governance to embed AI into critical workflows.

Peter Carr, Director and Principal Analyst at Councilio, said organisations that integrate AI into established investment and portfolio management frameworks would be better positioned to advance their AI use.