New research from SAP reveals that Singaporean businesses are significantly increasing their investments in artificial intelligence (AI), leading to promising returns.
The study conducted by Oxford Economics, The SAP Value of AI Report, shows that organisations are spending an average of S$18.9 million (US$14.5 million) this year on AI and reporting an impressive average return on investment (ROI) of 16%. Expectations are high, as this figure is anticipated to rise to 29% over the next two years.
“Spurred by strong policy direction, high digital maturity, and a globally connected economy, Singapore has moved decisively on AI ambition and investment," said Eileen Chua, managing director of SAP Singapore.
Eileen Chua
"Our research suggests that to sustain momentum and seize the next wave of AI innovation, organisations must address gaps in data readiness and workforce capability.” Eileen Chua
While satisfaction regarding AI ROI is evident, with 67% of respondents expressing contentment, and 63% noting improvements in decision-making and customer engagement, challenges linger. A notable 70% of Singapore business leaders are uncertain about whether AI is realising its full potential.
There is a pressing need for organisational readiness. The report reveals that 76% of businesses have not provided comprehensive AI training for their employees, and 68% acknowledge the use of unregulated AI tools within their organisations.
Concerns about data integration and sharing are pronounced, with 58% of respondents lacking confidence in their ability to unify data across functions—a crucial requirement for scaling AI.
One company harnessing AI effectively is Far East Organization, Singapore’s largest private property developer. The firm has leveraged SAP technology to automate its end-to-end lease management processes.
Ng Yee Pern
“Embarking on this strategic transformation with SAP, we’ve reduced repetitive manual work and improved the accuracy and speed of our decision-making,” stated Ng Yee Pern, CTO of Far East Organization. This advancement provides property managers with real-time insights into trends, ultimately enhancing decision-making and operational management.
Looking forward, Singapore companies are expected to focus on agentic AI—autonomous systems capable of planning, acting, and collaborating. Although only 6% of businesses are fully prepared to deploy AI agents, 70% recognise their potential to transform operations.
“Agentic AI represents the next frontier of business transformation,” Chua explained. “Its success hinges on data quality, integration, and workforce readiness. Those investing in these areas now will be best positioned to capture value as AI evolves.”
