Around 67% of Singapore businesses aim to prioritise AI investments for 2025: report

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Azunta Gaviola

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Singapore – A recent study from Capgemini Research Institute found that 67% of businesses in Singapore consider artificial intelligence among their top technology investments for 2025.

This includes the institute’s latest global reports stating that 75% of organisations in Singapore are likely to begin proof of concept (PoC) initiatives or fully implement AI agents. 

It was also revealed that around 70% of leaders in large organisations are preparing to expand their sustainability investments, while 60% focus on climate tech and another 57% on planning to increase their investment in the supply chain.

In addition, 58% said they are currently exploring next-generation supply chains designed to be agile, environmentally friendly, and AI-driven. Overall, 57% of business leaders in Singapore are optimistic about their organisation’s future, with 58% planning to boost investments in 2025.

Singapore further stood out worldwide with 85% of business leaders in large organisations aiming to enhance customer experience investments and 72% focusing on manufacturing/operations. 

Globally, U.S. organisations are anticipated to lead in tech investments in 2025.

Nearly three-quarters of executives have placed AI and generative AI among their top three priority technologies for 2025, with even stronger emphasis seen in the U.S. 

Meanwhile, as sustainability gains recognition as a business value driver, compliance asset, and efficiency booster amid growing geopolitical influence, 62% of executives plan to boost their sustainability budgets by an average of 10.5%.

Among key focus areas, 72% of executives intend to boost investments in climate tech, including hydrogen, renewable energy, battery technology, nuclear power, and carbon capture solutions. Key areas of increased sustainability investment also include sustainable research and development (R&D), product development, biodiversity protection and restoration, and water conservation and management.

Additionally, business leaders remain confident in customer experience as a primary focus, followed by engineering, R&D, and innovation, with nearly 80% and 75% of executives planning to increase investments in these areas, respectively. 

New-generation supply chains will then incorporate AI and the Internet of Things (IoT) to elevate efficiency, reduce waste, and support a business’s sustainability goals. Said move further aims to enhance decision-making and reduce costs overall based on reports.

However, the most significant growth in investment is in supply chain transformation, with 63% aiming to boost spending in 2025, up from under 50% in 2024, with an average increase of 9.4%.

Aiman Ezzat, chief executive officer at Capgemini, said, “As we look to 2025, business leaders are navigating uncertainty with an attitude of confidence and resilience—two qualities that our research shows they are looking to instill in their organisations through technology investment.”

Overall, the reports reveal that business leaders are more optimistic about the upcoming year than they were 12 months ago, with 62% expressing confidence in their organisation’s prospects for 2025, an increase of 6 percentage points from last year and 20 points from 2023.

While executives are more confident in their own organisations, only 37% are optimistic about the global operating environment over the next 12-18 months, a modest increase from last year.

“With a focus on innovation, supply chains, and sustainability—which is increasingly being harnessed for its value-driving potential—leaders will set themselves up to succeed in an uncertain environment and build resilient, adaptable organisations. Crucially, this will help shape a more innovative, sustainable, and inclusive global economy,” added Ezzat.

 

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