Businesses to ramp up AI investments in 2025, with over half planning budget increases: report

by

Azunta Gaviola

-

4 months ago

Be part of the forefront of innovation and reshape the future of retail and e-commerce! Making its highly anticipated return, MARKETECH APAC and UpTech Media partners for the Retail & E-Commerce Innovation Marketing & Tech Summit Malaysia 2025, happening on 22 May 2025 at Sheraton Petaling Jaya and for the Retail &E-Commerce Innovation Marketing & Tech Summit: Philippines 2025 on 25 June 2025 at Shangri-La The Fort, Manila. Don’t miss out!

Singapore – A recent report from Freshworks revealed a surge in AI adoption and investments, with 61% of business leaders confirming their organisations have accelerated their usage of artificial intelligence in 2024. 

Along with this figure, more than half of the departments also shared they are planning to increase their AI budgets in 2025.

According to the report, employees spend three hours a day feeling frustrated and disengaged with their work tasks. This adds up to four and a half months of wasted productivity each year, costing US businesses $2.38 trillion annually.

It was further observed that employers are eager to eliminate busywork with AI, noting 92% of the respondents want to automate parts of their workday. Nearly half (46%) would consider changing jobs for the opportunity to use AI to reduce tedious tasks.

With AI saving time for 98% of employees, many are also channelling their extra hours into enhancing productivity (71%), mentoring peers (67%), and tackling creative or complex projects (66%). In particular, 38% of employees credit AI for helping them secure raises or promotions.

Meanwhile, leaders are also recognising the value of AI, with 68% willing to invest in upskilling their workforce through AI training. As a matter of fact, over half (55%) of leaders prioritise AI skills when evaluating employees for promotions, and 45% of senior executives are planning to establish and hire AI-focused roles within their organisations.

Findings also unveiled the demand for AI skills, indicating 38% of employees stating AI helped them get a salary increase or a promotion. Another 68% of leaders further said that they are willing to pay to support employees in taking AI upskilling courses.

Trust in AI is on the rise, with 30% of employees saying that their IT teams are to thank for increased employee trust surrounding AI. Among IT professionals, 54% further believed AI is driving more value than before, 67% call it a necessity, and 85% say it’s making their workday more enjoyable and productive.

Interestingly, despite the disconnect’s impact on customer experience, some customer service teams are beginning to reap the benefits of AI. Approximately 40% of CS agents say that AI bots and agents are invaluable to their workload, and 74% say their opinion of AI has changed for the better due to its increased capabilities and performance. 

In addition, CS agents specifically note that AI is helping de-escalate tense situations (25%) and turn a poor customer experience into a good one (35%). About 51% said that AI allows them to learn new skills via saved time, and another 36% stated AI is driving more noticeable value than ever before.

Be part of the forefront of innovation and reshape the future of retail and e-commerce! Making its highly anticipated return, MARKETECH APAC and UpTech Media partners for the Retail & E-Commerce Innovation Marketing & Tech Summit Philippines 2025, happening on 25 June 2025 at Shangri-La The Fort, Manila. Don’t miss out!

The NEXT Awards 2025 is here, and we’re seeking the most innovative marketing campaigns from Indonesia, the Philippines, Malaysia, Singapore and Asia Pacific. Submit your entry today and showcase your best work!

Share

RECENT ARTICLES

Informatica welcomes Krish Vitaldevara as new executive vice president, chief product officer
Synagie, HKT to accelerate Hong Kong’s SME growth overseas with ‘ShopHK’ launch
Globe, Singtel subsidiary establish joint venture to boost cloud, AI solutions in APAC
Rimini Street joins Workday AMS Partner network, launches ‘Rimini Manage for Workday’
Trident Digital forge strategic alliance with Silkoo, Haitu to establish integrated, tech-driven e-commerce ecosystem
Ellipse 3

RELATED ARTICLES

AI adoption in SG stands at 27% only despite growing focus on adoption report_11zon
AI adoption in New Zealand’s retail sector stands at 33%, below Australia and Singapore report (1)
AI adoption in New Zealand’s retail sector stands at 33%, below Australia and Singapore report
Ellipse 3

FEATURED ARTICLES

1_Huawei unveils smart tech strategies for secure, transparent e-commerce future 
1_Beyond the cart Shoppertainment execs on harnessing the potential of live commerce for unmatched customer experience_11zon
EW2025_(UT)Launch Article_Feature Image_11zon

Subscribe to UpTech Media Newsletter

Video Title Here: The Indonesian on-ground activation status

Sed ut perspiciatis unde omnis iste natus error sit voluptatem accusantium doloremque laudantium, totam rem aperiam, eaque ipsa quae ab illo inventore veritatis et quasi architecto beatae vitae dicta sunt explicabo. Nemo enim ipsam voluptatem quia voluptas sit aspernatur aut odit aut fugit, sed quia consequuntur magni dolores eos.

Video Title Here: The Indonesian on-ground activation status

Sed ut perspiciatis unde omnis iste natus error sit voluptatem accusantium doloremque laudantium, totam rem aperiam, eaque ipsa quae ab illo inventore veritatis et quasi architecto beatae vitae dicta sunt explicabo. Nemo enim ipsam voluptatem quia voluptas sit aspernatur aut odit aut fugit, sed quia consequuntur magni dolores eos.

Video Title Here: The Indonesian on-ground activation status

Sed ut perspiciatis unde omnis iste natus error sit voluptatem accusantium doloremque laudantium, totam rem aperiam, eaque ipsa quae ab illo inventore veritatis et quasi architecto beatae vitae dicta sunt explicabo. Nemo enim ipsam voluptatem quia voluptas sit aspernatur aut odit aut fugit, sed quia consequuntur magni dolores eos.