SINGAPORE: As small and medium enterprises (SMEs) navigate economic turbulence, many are turning to cutting-edge technologies like generative AI (Gen AI) to maintain a competitive edge. The latest SME Pulse Check Survey by DBS, featured in the Asian Business Review conducted early this year, reveals that 73% of SME leaders plan to invest in Gen AI solutions to drive efficiency and growth in a volatile market landscape. With the economy facing uncertainties, adopting innovative technology is crucial for survival and success.
Investing in technology and talent for future growth
The survey highlights that nearly three-quarters of businesses are eager to integrate Gen AI into their operations, particularly in marketing and communications, where 32% of respondents have already begun using AI tools. Alongside tech adoption, companies are prioritising employee upskilling, with 72% planning to equip their teams with the necessary skills to leverage Gen AI effectively.
Koh Kar Siong, Group Head of Corporate and SME Banking at DBS, commented on the trend, stating, “SMEs in Singapore are taking bold steps to future-proof their businesses, whether by investing in Generative AI to boost productivity or expanding into high-growth markets to capture new opportunities.” Government grants, affordable digital solutions, and expert guidance are aiding these companies in their journey toward digital transformation.
Expanding beyond borders and embracing sustainability
The drive for innovation is not limited to technological advancements. The survey also revealed that 70% of SMEs are eyeing expansion into regional markets, with a strong focus on ASEAN and other growth areas. For these businesses, having the right market insights, guidance on trade laws, and access to reliable suppliers and distributors is essential to their international success.
On the sustainability front, 36% of respondents are already in the advanced stages of preparing their operations for greener practices. However, many SMEs are still hampered by limited resources and complex regulations. Despite these barriers, the push towards sustainability is gaining momentum, with businesses taking proactive steps to manage their environmental impact while seeking growth opportunities across borders.