Singapore Firms See Solid AI Gains with Potential Barriers

Singaporean companies are accelerating their AI investments, with new SAP-commissioned research revealing an average spend of S$18.9 million per company this year (about $14.5 million). According to this survey of 200 business leaders in Singapore, these firms report an average 16% return on AI investments today, with projections rising to 29% within two years.  

Still, the long-term value of AI remains constrained by critical readiness gaps. The study found that 76% of Singapore organizations have not provided comprehensive AI training to their workforce, even as 68% admit that shadow AI, unapproved or unmanaged AI tools, is being used internally. Additionally, 58% of respondents lack confidence in integrating and sharing data across business units, with especially low confidence in key functions: legal (80%), finance (73%), HR (66%), procurement (55%), and even in the CEO’s office (64%). 

Advent of Agentic AI 

Many Singaporean businesses see agentic AI as the next frontier. But readiness is low: only 6% of companies say they’re fully prepared to scale AI agents, while 52% report being only partially ready. Yet, 70% believe AI agents hold moderate to high transformative potential, and 72% say agents could significantly enhance cross-functional workflows.  

Eileen Chua, Managing Director of SAP Singapore, stressed that future value from AI depends on two fundamentals: data quality and people readiness. “Agentic AI’s success depends on the same fundamentals of data quality, integration, and people readiness,” she noted. 

One real-world example highlighted in the report is Far East Organization, Singapore’s largest private property developer. Using SAP Business AI, the firm has automated its end-to-end lease management, from contract generation to analytics. This digital transformation has reduced manual work, improved data accuracy, and enabled real-time portfolio insights. These tasks that used to take days are now completed in minutes. 

However, the study underscores that 70% of business leaders remain uncertain about their AI investments, realizing their full potential. 

To unlock the next phase of AI-driven value, Singapore organizations will need to make strategic investments in both workforce skills development and data infrastructure — laying a strong foundation for generative AI to evolve into fully autonomous, agentic systems. 

What This Means for Mastering SAP Insiders  

AI investments are key to finding business value. Early AI investments are paying off, but long-term value hinges on readiness the SAP report shows.
Singapore firms are already seeing an average 16% ROI on their AI investments, and they expect that to climb to 29% within two years. However, the study also indicates that 70% of business leaders are unsure AI is delivering its full potential — signaling that early returns don’t yet guarantee sustainable transformation. 

Skills and governance are significant bottlenecks. While investments are strong, 76% of Singapore companies have not provided comprehensive AI training, and 68% report the use of shadow AI, or unregulated tools. This suggests a misalignment: AI adoption is racing ahead, but workforce readiness and proper governance are lagging, risking inconsistent, unmanaged usage. 

Agentic AI is coming, but data architecture is the linchpin. Many companies see autonomous, agentic AI as the next big value driver. Still, only 6% feel fully ready to scale it, with 58% lacking the confidence in integrating data across business units. This is a key hurdle, since agentic AI depends heavily on unified, high-quality data.