As Singapore strives to establish itself as a leader in the AI-powered economy, a recent study by General Assembly highlights significant challenges that organisations face in adapting to this transformation. While confidence in AI is increasing among business leaders, critical issues surrounding AI literacy, skills gaps, and the readiness of leadership are emerging as focal points for operational effectiveness.
The study reveals a concerning trend: many organisations are approaching AI implementation superficially, prioritising technical deployment over integrating AI into broader business strategies. This disconnect is particularly evident in the varying definitions of "AI literacy" among different departments. For example, human resources and technical teams often have differing expectations, leading to confusion in recruitment and training.
“AI is fundamentally changing how organisations operate – and leadership readiness is now the key differentiator,” says Sima Saadat, Singapore Country Manager at General Assembly. This sentiment underscores the need for leaders to not only understand AI technologies but also to foster an environment that encourages ongoing education and adaptation.
Despite rising confidence—74% of leaders feel secure in making AI-related vendor decisions—only 28% of companies provide regular AI training for employees. This gap suggests that while organisations are eager to adopt AI, they are not adequately preparing their workforce to leverage its full potential. The decline in entry-level positions further complicates matters, as companies seek experienced candidates, risking a long-term loss of industrial knowledge.
Moreover, the influx of Gen Z talent presents both opportunities and challenges. Hiring managers are concerned that younger professionals may over-rely on AI tools, potentially hindering the development of essential problem-solving skills. This raises important questions about how organisations can balance the integration of AI with the need for core competencies within their teams.
The findings also indicate that 36% of leaders believe AI could replace their roles, reflecting both optimism and anxiety about the future of work. As Singaporean organisations continue to experiment with AI across various sectors, particularly in finance and retail, the emphasis must shift toward comprehensive leadership development and a clear understanding of AI’s role in shaping business processes.
“Leadership championship and continuous learning are critical to maximising AI’s impact,” stated Daniele Grassi, CEO of General Assembly. To navigate the complexities of AI implementation, organisations must prioritise leadership training that blends technical knowledge with change management skills.
As Singapore moves forward in its AI journey, COOs and CHROs must ensure that their teams are not only equipped with the necessary skills but also aligned with a unified vision for AI integration. By fostering a culture of continuous learning and strategic leadership, Singapore can secure its position at the forefront of the AI revolution.
