Singapore firms advance AI but remain wary of short-term returns

The study also reported an anticipated return of 26.9%, compared with the APJC average of 33.3%

Singapore organisations are advancing quickly in their use of artificial intelligence, yet remain cautious about its near-term impact.

A new study from Dell showed that 52% of companies are in the early to mid stages of adopting AI and generative AI, ahead of the 47% regional average, whilst 27% are actively deploying these tools and 15% say their use is already well established.

Even with this momentum, the report found that firms here are less optimistic about broader innovation than regional peers and are wary about short-term returns.

Innovation remains central to corporate planning. According to Dell, 72% of respondents view innovation as a strategic priority, and 73% include AI and generative AI in that vision. The study also shows that 80 % aim to embed sustainability into operations and 85 % consider security a core strategic focus.

Singapore companies expect lower returns from AI than the regional average. The study reported an anticipated return of 26.9%, compared with the APJC average of 33.3%, and noted that 42% of respondents are pessimistic about AI’s short-term value.

Integration continues to pose challenges. 44% say they struggle to keep pace with rapid AI change, and 47% are unsure how their industries will evolve over the next three to five years.

More than 95% report difficulty linking AI, sustainability, and security in their strategies, and 96% face or expect barriers that include data security, regulation, system integration, and shortages of expertise.

Data readiness is another near-universal concern. 97% of companies report challenges preparing data for AI, citing issues such as privacy and security, managing sensitive data, infrastructure integration, and a lack of in-house expertise.

Environmental considerations are shaping corporate decisions. 93% express concern about AI’s energy footprint, though 80% believe its benefits outweigh the costs.

The study found that 89% see AI helping improve resource use, and most organisations are already taking steps to manage AI-related energy consumption.

In addition, 98% have sustainability strategies focused on energy efficiency, IT asset lifecycle management, regulatory reporting, and carbon reduction.

Security remains both a risk and an opportunity. Dell said 97% of respondents are trying to balance innovation with security needs, and 74% worry that generative AI tools could expose intellectual property.

At the same time, 86% expect AI to improve security operations, and 94 % report higher confidence due to newer security solutions, particularly in threat detection, response, recovery, and zero-trust frameworks.