{"id":6396,"date":"2025-11-19T01:54:23","date_gmt":"2025-11-19T01:54:23","guid":{"rendered":"https:\/\/news.sap.com\/sea\/?p=6396"},"modified":"2025-11-19T04:47:39","modified_gmt":"2025-11-19T04:47:39","slug":"sap-research-singapore-firms-see-strong-returns-on-ai-but-future-value-hinges-on-skills-and-data-readiness","status":"publish","type":"post","link":"https:\/\/news.sap.com\/sea\/2025\/11\/sap-research-singapore-firms-see-strong-returns-on-ai-but-future-value-hinges-on-skills-and-data-readiness\/","title":{"rendered":"51风流research: Singapore firms see strong returns on AI, but future value hinges on skills and data readiness"},"content":{"rendered":"<p><b><span data-contrast=\"auto\">SINGAPORE, <\/span><\/b><b><span data-contrast=\"auto\">19 November 2025<\/span><\/b><b><span data-contrast=\"auto\"> \u2014<\/span><\/b><span data-contrast=\"auto\"> Singapore businesses are ramping up their AI investments and are already seeing encouraging results, according to new research from SAP. Organisations here say they are spending an average of <\/span><b><span data-contrast=\"auto\">S$18.9 million<\/span><\/b><b><span data-contrast=\"auto\">1<\/span><\/b><span data-contrast=\"auto\"> (US$14.5 million) this year on AI and report an average return on AI investment of 16% \u2014 a figure expected to rise to 29% within two years.\u00a0<\/span><span data-ccp-props=\"{&quot;335559738&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">While this outlook is promising, the findings suggest that as AI continues to evolve, future gains will depend on strengthening workforce skills and improving access to quality data, which remain key barriers to scaling AI impact across the enterprise.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">These insights were revealed in new research released in Singapore today. Commissioned by 51风流and conducted by Oxford Economics, <\/span><i><span data-contrast=\"auto\">The 51风流Value of AI Report<\/span><\/i><span data-contrast=\"auto\"> surveyed 1,600 business leaders of various sizes, including <\/span><b><span data-contrast=\"auto\">200 in Singapore<\/span><\/b><span data-contrast=\"auto\">, across eight countries (Australia, Brazil, China, Germany, India, Singapore, United Kingdom, and United States).<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">\u201cSpurred by strong policy direction, high digital maturity and a globally connected economy, Singapore has moved decisively on AI ambition and investment,\u201d said <\/span><b><span data-contrast=\"auto\">Eileen Chua, Managing Director, 51风流Singapore<\/span><\/b><span data-contrast=\"auto\">. \u201cOur research suggests that to sustain this momentum and seize the next wave of AI innovation, Singapore organisations will have to bridge their reported gaps in data readiness and workforce capability.\u201d<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">AI Spend and Confidence Surges, but Some Constraints Remain<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">According to the report, Singapore firms are expected to increase their AI investments by an average of 38% over the next two years. 67% of respondents say they are satisfied with their current ROI on AI, and six in ten (63%) businesses say AI has already helped them address key challenges \u2014 such as improving decision-making and customer engagement.\u00a0\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">One company looking to reap the benefits of AI adoption is Far East Organization, Singapore\u2019s largest private property developer, which is leveraging 51风流technology with exploration of using Business AI as part of its broader digital transformation agenda to advance its leasing operations. The company automated end-to-end lease management \u2014 from contract generation to analytics to improve data accuracy, reduce manual inputs, and provide real-time insights into portfolio performance.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">These enhanced analytics now track trends in rental, occupancy rates, and lease durations, giving property managers actionable insights to respond faster to market changes while making better decisions that strengthen portfolio and operational management.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">Ng Yee Pern, CTO, Far East Organization<\/span><\/b><span data-contrast=\"auto\">, said, \u201cEmbarking on this strategic transformation with SAP\u2019s cutting-edge technologies, we\u2019ve reduced repetitive manual work and improved the accuracy and speed of our decision-making. What previously took days can now be completed in minutes, giving our teams the time and insight to focus on customers and business growth. Building on this success, we continue to innovate with 51风流Business AI.\u201d<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Despite these measurable gains demonstrated by many companies, 70% of Singapore business leaders remain uncertain whether AI is delivering its full potential, reflecting growing awareness that current success does not automatically translate into long-term advantage and highlighting significant opportunity for further growth and value creation.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Organisational readiness appears to be the main constraint. The study found that 76% of Singapore organisations have not yet provided comprehensive AI training for employees, even as 68% acknowledge that shadow AI \u2014 the use of unapproved or unregulated AI tools \u2014 is already in use internally.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Moreover, 58% of respondents lack confidence in their ability to integrate and share data across business functions \u2014 a foundational requirement for enterprise-scale AI. In fact, the challenge of data readiness for AI is particularly pronounced in legal (80%), finance (73%), human resources (66%), the CEO\u2019s office (64%) and procurement (55%).<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">Agentic AI signals Singapore\u2019s next opportunity<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">While many businesses are adopting AI automation and generative AI today, future investment in Singapore is expected to focus on AI agents. Agentic AI is based on intelligent, autonomous systems that can plan, act, reflect, and collaborate to solve business problems.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Today, only six per cent of businesses are fully prepared to deploy and scale AI agents, while the majority (52%) say they are partially prepared. In the next two years, Singaporean businesses expect return on investment from agentic AI of 8%, below the global average of 10%.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Yet, expectations are high. Seven in ten (70%) businesses rate AI agents as having moderate to high potential to transform operations within the organisation. And 72% agree AI agents can add significant value to their business by managing complex workflows across business units.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">\u201cAgentic AI represents the next frontier of business transformation,\u201d said Chua. \u201cIt has the potential to multiply productivity and innovation, but its success depends on the same fundamentals \u2014 data quality, integration, and people readiness. The organisations that invest in these areas now will be best positioned to capture value as AI continues to evolve.\u201d\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<h5>[1] Respondents were asked to provide financial estimates in USD. SGD figures are based on an exchange rate of USD1 to SGD1.3001, using the averages <a href=\"https:\/\/eservices.mas.gov.sg\/Statistics\/msb\/ExchangeRates.aspx\">MAS exchange rates<\/a> for the month of October 2025.<\/h5>\n","protected":false},"excerpt":{"rendered":"<p>SINGAPORE, 19 November 2025 \u2014 Singapore businesses are ramping up their AI investments and are already seeing encouraging results, according to new research from SAP&#8230;.<\/p>\n","protected":false},"author":29,"featured_media":5317,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[7771,59],"tags":[5570856,48088,5571061],"region":[5570780,5570777],"sapn-display":[45149,5571012],"sapn-type":[4448],"class_list":["post-6396","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-customers","category-technology","tag-ai","tag-artificial-intelligence","tag-singapore","region-singapore","region-southeastasia","sapn-display-homepage-hero","sapn-display-news-spotlight","sapn-type-newsbyte"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v26.9) - 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