Amazon Web Services (AWS) has uncovered the rapid acceleration of artificial intelligence (AI) adoption. Nearly 170,000 (48%) businesses have embraced AI, marking a significant 20% year-over-year growth from approximately 143,000 (40%) in 2024.
While the numbers are encouraging, the study also revealed an innovation gap. The majority of businesses are using AI at a basic level, indicating a need for more innovative use cases.
"Getting past the proof-of-concept stage for promising AI projects requires more than just good technology – it also requires capital investment, dedicated skills development and organisational commitment in fostering a culture that prioritises innovation, embraces continuous learning, and adapts readily to change,” Priscilla Chong, country manager, Singapore, AWS.
AI adoption
The study underscores the potential benefits of AI adoption. The financial services industry (71%), technology (70%), and healthcare (63%) are leading the way.
The majority (82%) of businesses that have adopted AI reported an increase in revenue, averaging 19%. Moreover, 90% report significant productivity improvements and 89% of companies also expect an average of 17% in cost savings.
AI innovation gap
Despite the widespread use of AI, 65% of adopters use it for basic functions instead of developing innovations.
Only 17% of Singaporean businesses have reached the most transformative stage of AI integration. On the other hand, among startups in Singapore, 82% use AI, and 42% are building entirely new AI-driven products. Among large enterprises, 62% are using AI, but only 16% are delivering a new AI-driven product or service.
Businesses point to the skills gap (43%) as the top reason preventing them from adopting or expanding their use of AI.
AWS collaborated with Strand Partners to conduct the AI adoption survey in Singapore titled “Unlocking Singapore’s AI Potential”. It surveyed 1,000 business leaders and 1,000 nationally representative members of the public in Singapore.
