Singapore – Nearly seven in 10 Singapore businesses have yet to reach or approach their artificial intelligence (AI) goals, as rising costs and gaps in digital infrastructure hinder adoption, according to research by Autodesk.
The findings cover Singapore’s design and make industries, including architecture, engineering, construction and operations, design and manufacturing, and media and entertainment. Technology and AI advancements were identified as the leading organisational challenge by 46% of local respondents, ahead of cost concerns at 42%.
Although 75% of respondents in Singapore believe AI will enhance their industries, the proportion of companies reporting that they were approaching or had achieved their AI goals fell from 42% to 31%. A further 69% remained in the early, middle or unstarted stages of their AI journeys, compared with a global average of 60%.
Cost pressures were cited as the main barrier to digital transformation by 51% of Singapore businesses, up from 43% in 2025 and above the global average of 37%. Meanwhile, 37% identified a lack of technical knowledge as an obstacle, while the same proportion cited the time required to adopt new ways of working.
The findings point to growing demand for stronger data infrastructure and skills as organisations move towards more advanced AI applications. AI systems depend on connected, high-quality data from across business functions to provide context and support decisions. This is particularly important for AI agents designed to carry out multi-step tasks with limited human intervention.
Data analytics has become the leading hiring priority among Singapore businesses, cited by 49% of respondents, up from 39% in 2025. The figure is also higher than the global average of 34%. Demand for data science and data management skills rose from 32% to 39%.
“With AI becoming table stakes for modern businesses, finding the right AI applications is only half the equation. Building robust, connected digital foundations to support these engines of growth is equally vital, especially as regulatory frameworks increasingly focus on ensuring safe, ethical, and responsible AI deployment,” said Haresh Khoobchandani, Vice President, Asia Pacific at Autodesk.
“Organisations cannot afford to overlook this groundwork, with any misstep in execution or compliance easily causing them to fall behind their peers. Successfully navigating this transition requires leaning on established frameworks and resources from across both the public and private sectors to ensure safe, sustainable deployment,” Khoobchandani continued.
The research also examined organisations that are advancing across digital maturity, AI adoption and sustainability. Globally, these businesses account for 11% of respondents and were more likely to exceed performance expectations than other organisations.
Among these leading businesses, 91% prioritised system connectivity through application programming interfaces (APIs), 94% had dedicated AI integration teams and 93% focused on internal data accuracy. By comparison, the corresponding figures among mainstream organisations were 60%, 61% and 74%.
In Singapore, 9% of respondents were classified in this leading group. One example cited was RSP Architects Planners & Engineers, which adopted a data-driven approach to create a single source of truth across its workflows. This enabled teams to assess design risks more effectively and deliver complex projects on schedule.
“As Singapore positions itself at the forefront of agentic AI, working towards its AI hub aspirations, the winners won’t simply be those who deploy tools fastest. Real market leadership will belong to businesses that build interconnected, context-rich environments where advanced AI can act safely, accurately, and at scale,” Khoobchandani continued.
