Singapore leads in AI adoption but workforce gaps remain

Aon said employers still face challenges in talent, pay transparency, and employee value proposition.

Singapore is ahead of regional benchmarks in AI adoption and several human capital trends, but employers still face gaps in workforce strategy, rewards, and talent readiness, according to Aon’s Human Capital Trends 2026 report.

The report described Singapore as one of Southeast Asia’s most successful economies, with strong progress in AI adoption. About 42% of employers said they have deployed AI, whilst 38% are piloting it.

Most employers expect AI to reshape work rather than fully replace roles. Around 83% said AI will automate some tasks, but existing roles will still be needed, whilst 88% said AI will create new opportunities and require new skills.

However, only 24% of employers said they can recruit and retain enough talent with AI skills.

Aon also highlighted gaps in employee value proposition, with only 31% of employers saying their EVP is clearly defined and well understood by employees.

Pay transparency also remains limited, with only 11% of employers saying their pay transparency practices are mature or very mature. Meanwhile, 13% said they have not benchmarked compensation in the past year.

The report also found that only 27% of employers have a high level of data maturity in HR.

Singapore employers identified adaptability and change management as the most critical workforce skills for organisational success over the next three years.

Their top people strategy priorities are optimising workforce planning and organisational design, accelerating digital transformation in HR processes, and strengthening leadership and succession planning.

For total rewards, employers are focused on retaining high performers, driving business performance, and attracting top talent.

Aon said employers should address gaps in benefits expectations, expand access to customised benefits, and strengthen rewards strategies to improve workforce experience and business outcomes.

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