However, adoption breadth does not automatically translate into economic impact. Companies that generate measurable returns tend to reconfigure processes rather than layer AI onto legacy systems, as highlighted in the AI in Southeast Asia report published in February 2026 by McKinsey, Singapore’s Economic Development Board (EDB) and technology news publication Tech in Asia. These higher-performing organisations also allocate larger digital budgets to AI and demonstrate stronger executive ownership.
Budget 2026 placed AI at the centre of Singapore’s growth agenda. Prime Minister and Finance Minister Lawrence Wong described AI as a “decisive factor for success” and said Singapore’s edge lies in deploying it “effectively, responsibly, and at speed.” While the policy direction is clear, whether that ambition translates evenly into enterprise execution is less certain.
Data on enterprise AI adoption suggest momentum. The Infocomm Media Development Authority (IMDA)’s Singapore Digital Economy 2025 Report shows AI adoption among large enterprises rose to 62.5% in 2024 from 44% the previous year. Among small- and medium-sized enterprises (SMEs), adoption more than tripled from 4.2% to 14.5%. Firms that have adopted AI are using it across multiple business functions, with SMEs applying AI in an average of three functions and larger enterprises in five. The most common use cases were in IT, customer service, finance and accounting.
