Artificial Intelligence returns stall as 77% of firms lack readiness

Research indicates a massive disconnect between widespread deployment and the ability to generate long-term business value.

The majority of Singapore firms said they are using artificial intelligence (AI) in their company, but many are still uncertain when it comes to sustained returns.

According to the Hitachi Vantara State of Data Infrastructure 2025 Report, 96% of local firms reported some level of AI use. Further, 66% said their organisation has already had success using the technology.

“However, confidence drops when it comes to sustained returns. Whilst adoption is widespread, many enterprises remain uncertain about their ability to consistently translate AI adoption into long-term business value, highlighting a growing disconnect between deployment and operational readiness,” the analysis said.

Only 23% said their organisation have strong readiness to achieve return on investment from AI, pointing to uncertainty around sustained value creation.

“This gap suggests that whilst Singapore enterprises are advancing with AI, not all are equally prepared to support it at scale over the long term,” it noted.

In another survey, meanwhile, EY said that organisations miss out on about 55% of potential productivity gains due to the disconnect between AI adoption and workforce readiness. Whilst nine out of 10 employees use AI at work, workplace AI anxieties contribute to the value gap.

The Hitachi Vantara survey also said that 52% said the complexity of their data makes it more difficult to detect a security breach, with 64% agreeing that if leadership fully understood how fragile their data infrastructure is, it would keep them up at night.

“Singapore businesses are clearly ahead in adoption, but the next phase will be defined by how well they manage complexity, security and performance as AI scales,” said Joe Ong, vice president and general manager for ASEAN, Hitachi Vantara.

LinkedIn’s Work Change Report has said that small businesses, specifically, are focusing on technology adoption, brand credibility and professional networks this year.

“Whilst AI usage is high and early success is common, rising complexity and security risks threaten to erode confidence and returns if not addressed systematically,” said the Hitachi Vantara study.

“As AI investment continues to accelerate, the ability to simplify data environments, strengthen governance and improve visibility will be critical in determining which organisations can move from early success to sustained value,” it added.