Singapore – Majority of businesses in Singapore are doubling down on artificial intelligence as a driver of transformation, according to Autodesk’s latest industry report. However, limited access to skilled talent continues to pose a significant challenge.
Findings revealed that AI emerged as the top investment priority among Singapore business leaders (72%), with nearly half intending to hire talent equipped with AI skills in the coming years.
Around 74% of those surveyed also said AI will enhance their industry, above the Asia Pacific (APAC) average of 68%. On the other hand, about 69% believe that AI will make their industry more creative. 75% also indicated their investments in AI will increase, above the APAC average of 68%.
The report also found that overall trust and confidence in AI remain high. These sentiments, according to the research, may be influenced by the Singapore government’s ongoing support for AI, noting considerable assistance provided to local businesses through initiatives.
More specifically, it was noted that nearly seven in ten (68%) Singapore business leaders trust AI technologies for their industry. 76% also expressed confidence that their companies will make the right decision when it comes to AI, above the APAC average of 68%.
More than half (54%) of Singapore business leaders further agree that AI will destabilise their industry.
Haresh Khoobchandani, VP of APAC & Japan at Autodesk, said, “Our research tells us that over 80% of business leaders in Singapore feel the global landscape is more unpredictable than ever. Cost control and management are now top priorities, likely due to rising business costs. These economic pressures are pushing businesses to eliminate inefficiencies, making digital-led growth through technologies like AI a necessity.”
Interestingly, more than six in ten further reported the lack of access to skilled talent continues to hinder growth. Leaders, in fact, acknowledged difficulties in attracting, developing, and retaining talent, all of which are challenges limiting their capacity to fully leverage emerging technologies, including advancements in AI.
In particular, approximately 32% of Singapore business leaders ranked attracting, training, and retaining talent among their top 3 challenges faced. Three in ten (30%) also rank technological advancements, including AI, among their top 3 challenges.
Furthermore, businesses also struggle to hire employees with the right technical skills, which may lead to a premium being placed on AI skills when hiring.
Specifically, less than half of local leaders shared their organisations are approaching or have achieved their AI goals, suggesting potential challenges with implementation.
About six in ten (61%) Singapore business leaders face challenges hiring new employees with the right technical skills. Nearly half (47%) also prioritise the ability to work with AI when hiring in the next few years. These figures are now followed by a focus on skills related to data analytics and insights, a priority among 39% when it comes to hiring. Only four in ten (43%) said they are approaching or have already achieved their AI goals.
Efforts to upskill the workforce through on-the-job training and ongoing learning are proving difficult for many, leaving businesses vulnerable amid accelerating change.
To note, more than 71% of Singapore business leaders said their organisations are implementing skilling programmes to mitigate the talent shortage. However, more than half of professionals indicated they do not have the resources to design internal training programmes.
More than 61% also said external training programmes do not meet the needs of their organisation, above the APAC average of 54%.
Besides talent shortages, the report further revealed cost pressures and rapid technological shifts rank high among business concerns.
In addition, organisations in Singapore are now using AI to achieve sustainability goals and are among the most likely in APAC to do so.
According to the report, 48% of Singapore business leaders use AI to be more sustainable, above the APAC average of 39% and ranking second in the region only after India (52%).
Singapore is also on par with its APAC (94%) and global (95%) counterparts, with 96% of business leaders stating their organisations are making changes to be more sustainable.
Sustainability strategies are also increasingly shaped by external forces, most notably customers (78%), partners (75%), and suppliers (60%). Recognising its potential, over 73% of business leaders believe sustainability can contribute more than 5% to their yearly earnings.
“AI is packed with potential. Beyond generating innovative ideas, it can also take on more complex tasks, offering a major opportunity for Design and Make leaders to continue growing in today’s competitive landscape,” Khoobchandani further noted.
He also added, “The most successful businesses will be those able to close the skills gap. Beyond using their own resources, this means leveraging available government initiatives like SkillsFuture and the Enterprise Compute Initiative in addition to working with private-sector experts. This holistic approach will be key to help businesses move beyond the AI hype and start delivering real results.”
