Two-thirds of Singaporean firms cut AI investments over trust concerns

They cited data governance (26%), budget constraints (28%), and untrusted data (26%) as major barriers.

Over two-thirds of Singaporean businesses are scaling back their investments in AI due to trust issues, according to Qlik.

In a report, Qlik said this trend is more pronounced in Singapore compared to the global average, where 61% of AI decision-makers cite reduced investment as a consequence of trust concerns, rising to 74% locally.

While the potential of AI to transform businesses is widely acknowledged—90% of Singapore’s senior decision-makers regard it as critical for success—numerous barriers continue to hinder its implementation.

Key challenges faced by businesses in Singapore include data governance issues (26%), budget constraints (28%), and a lack of trusted data for AI systems to operate effectively (26%).

Additionally, a shortage of skills for both developing (19%) and deploying (23%) AI solutions further complicates adoption.

Qlik noted trust remains a significant obstacle, with many senior management teams (37%) and employees (42%) globally lacking confidence in AI.

Moreover, 21% of decision-makers report similar distrust amongst customers. In Singapore, this lack of trust is contributing to the stalling of AI projects. About 34% of businesses have over 50 AI initiatives stuck in the planning phase, far exceeding the global average of 11%.

Nevertheless, Singapore's businesses are more inclined to develop AI solutions internally, with 72% preferring in-house development over ready-made solutions, even though 79% of decision-makers see value in the latter.