SINGAPORE: The city-state is rapidly cementing its status as a global leader in artificial intelligence (AI), with 57% of local organizations deeming AI critical to their operations. This marks Singapore as one of the highest adopters of AI worldwide, surpassing both the regional average of 42% and the global average of 37%, according to cloud solutions company Hitachi Vantara.
According to a recent Singapore Business Review report, despite its strong embrace of AI, Singaporean companies face significant hurdles in maximizing its potential. A major challenge is data accuracy: AI models in the country produce accurate outputs only 32% of the time. The accuracy gap highlights an ongoing struggle with refining the vast amounts of data required for AI to function at its best.
Data availability is another roadblock, with businesses reporting that they can access the necessary data just 34% of the time. Adding to the complexity, only 30% of the data used for AI is structured, meaning the majority of the information is unrefined, disorganized, and challenging to work with.
These data-related obstacles are set to intensify as demand for data storage in Asia is expected to skyrocket by 123% over the next two years, creating further complications for AI implementation. In addition, nearly half (44%) of businesses in Asia cite data security as a significant concern, outpacing the global average of 38%. Countries like Singapore, India, and Indonesia are particularly sensitive to data security issues, which remain a key barrier to AI adoption.
Nevertheless, Singapore is pushing forward with determination, actively hiring AI talent and ranking among the highest in the region for engaging AI experts. Alongside Singapore, nations such as Indonesia, India, and China are also ramping up investments in external AI specialists, further accelerating the regional push toward AI adoption.
As businesses continue to navigate data and security challenges, Singapore’s strong commitment to AI investment and talent acquisition positions it as a trailblazer in the future of AI innovation in Asia and beyond.