A recent EY survey highlights a significant disconnect between the ambitions of government organisations in Singapore regarding artificial intelligence (AI) adoption and the reality of its implementation.
While a considerable 74% of respondents believe AI could lead to substantial cost savings and improved service delivery, only 26% have successfully integrated AI into their operations. This gap raises important considerations for business and operations leaders in Southeast Asia.
Public mistrust remains a predominant challenge, with 71% of Singaporean executives citing concerns about data collection and processing as a barrier to AI adoption.
Samir Bedi, Singapore government and public sector leader at EY, suggests: “To overcome public wariness, governments can start by building transparency and accountability into how data is used.” This indicates a path forward for organisations seeking to enhance their AI strategies and build citizen trust.
The survey further reveals that 61% of participants identify inadequate data infrastructure, including legacy systems, as a significant internal hurdle. Additionally, 52% express concerns around data privacy and security, both of which hinder confidence in AI scaling.
Despite this, 74% of respondents report effective management of data ethics, quality, and reliability.
EY emphasises that governments must invest in robust digital infrastructure. “Those that have established clear data governance frameworks are seeing faster, broader progress,” says Manik Bhandari, EY Asean Data and Artificial Intelligence Leader.
This is particularly relevant for operations leaders striving for scalable AI solutions in a landscape dominated by legacy systems.
The survey points to a promising trend, with 84% of Singaporean respondents planning investments in digitisation and automation over the next three years.
Prioritising foundational data and digital infrastructure is a strategic move that lays the groundwork for advanced analytics. Over half of the respondents also aim to enhance data privacy and improve internal data sharing, signalling a commitment to transforming AI ambitions into tangible outcomes.
EY has established an Agentic AI Center of Excellence (CoE) in Singapore with the aim of driving productivity, fostering innovation, and contributing to the region's AI talent pool. By partnering with government agencies and corporations, the CoE seeks to tackle real-world AI challenges and develop scalable solutions.
As governments face unprecedented challenges—from demographic shifts to rising citizen expectations—the importance of leveraging AI strategically cannot be overstated. By investing thoughtfully in digital transformation, public sector leaders can align their operations with citizen needs and maintain public trust.
