Research from the SAP Value of AI Report finds Singapore organisations investing S$18.9 million on average in AI, with returns expected to nearly double.
Singapore businesses are sharply increasing their investment in artificial intelligence and already reporting strong early returns, according to new research released by the SAP Value of AI Report, which surveyed 1,600 business leaders across eight countries. The report shows that organisations here expect an average return on AI investment of 16% this year, rising to 29% within two years.
Eileen Chua, Managing Director, SAP Singapore, said: “Our research suggests that to sustain this momentum and seize the next wave of AI innovation, Singapore organisations will have to bridge their reported gaps in data readiness and workforce capability.”
AI adoption rises, but workforce and data readiness remain barriers
Singapore firms expect to increase their AI spending by an average of 38% over the next two years, with 67% of respondents satisfied with their current ROI. Early benefits are broad-based, with 63% of businesses reporting that AI has already helped address key challenges, including enhanced decision-making and improvements in customer engagement.
Far East Organization, Singapore’s largest private property developer, is among the companies applying AI to transform processes. Using SAP technology, it has automated end-to-end lease management from contract generation to analytics to improve data accuracy, reducing manual work and generating real-time portfolio insights.
CTO Ng Yee Pern said: “What previously took days can now be completed in minutes, giving our teams the time and insight to focus on customers and business growth.”
Despite such gains, 70% of business leaders remain uncertain whether AI is delivering its full potential. Organisational readiness appears to be the main constraint. 76% of organisations have yet to provide comprehensive AI training, even though 68% acknowledge that unapproved “shadow AI” tools are already being used internally. Confidence in data integration also remains low, with 58% saying they struggle to share data across business functions.
Agentic AI emerges as the next frontier
Looking ahead, Singapore organisations expect the next wave of value to come from agentic AI, which are autonomous systems capable of planning, acting, and collaborating to solve complex tasks. Only 6% of businesses are fully prepared to deploy such systems today, though 70% see high transformative potential and 72% believe AI agents can significantly enhance cross-functional workflows.
Chua noted, “Agentic AI represents the next frontier of business transformation. It has the potential to multiply productivity and innovation, but its success depends on the same fundamentals — data quality, integration, and people readiness.”
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