Singapore public sector lags on AI adoption with 26% uptake

61% cited inadequate data infrastructure or reliance on legacy systems, whilst 52% raised concerns about privacy and security.

Despite broad recognition of AI’s potential, only 26% of Singapore public sector organisations have actually deployed the technology, according to EY.

81% of respondents reported difficulty justifying the ROI of AI projects, well above the global average of 59%. Meanwhile, 71% pointed to public wariness around government data collection and processing as another key barrier, compared to 62% globally.

Still, optimism around AI’s potential remains strong. Among Singapore-based respondents, 74% believe AI could deliver significant cost savings, and 68% see its value in improving service delivery.

However, the foundations needed to scale AI remain a challenge. 61% cited inadequate data infrastructure or reliance on legacy systems, whilst 52% raised concerns about privacy and security.

That said, around three-quarters of respondents said they are already performing well in areas such as data ethics, interoperability, and data quality. Over half (55%) have implemented data security training initiatives.

Looking ahead, the top near-term priorities over the next three years include digitising and automating public services (84%), strengthening foundational data and digital infrastructure (74%), enhancing data privacy (58%), and improving internal data sharing (55%).