Singapore firms modernise IT faster as AI adoption gains pace: PwC

Businesses are ahead of global peers in AI investment appetite and advanced AI use.

Singapore businesses are moving faster to modernise their systems and adopt artificial intelligence, with 30% of local respondents saying they have eliminated outdated IT infrastructure, higher than the global average of 18%, according to PwC.

PwC’s Global AI performance study found that Singapore firms also showed stronger confidence in AI investment. About 67% of Singapore businesses have a higher risk appetite for AI investment, compared with 41% globally.

Meanwhile, 63% of Singapore respondents said they allocate people and funding based on AI opportunities, above the global average of 51%.

Singapore businesses are also using AI to compete more aggressively. Around 43% of local respondents said they use AI to compete beyond their own sector, compared with 20% globally.

The study also found that Singapore firms are deploying AI in more advanced ways. Globally, 37% of organisations still use AI mainly for analysis, prediction, and recommendation, compared with 20% in Singapore.

Meanwhile, 17% of Singapore businesses use AI in autonomous and self-optimising ways, compared with 8% globally.

Despite the progress, PwC said Singapore firms still trail global AI leaders in governance, data readiness, workflow redesign, and the use of AI to unlock new business value.

Only 53% of Singapore businesses surveyed have robust, up-to-date security to protect data, AI models, and infrastructure, compared with 69% of AI leaders.

About 47% have a documented responsible AI framework, whilst 43% have a cross-functional AI governance board.

Data readiness also remains a gap. About 37% of Singapore respondents maintain a single trusted record of critical data, compared with 59% of AI leaders. Meanwhile, 40% of Singapore firms use structured data, below the 60% recorded among AI leaders.

PwC said only 37% of Singapore businesses have redesigned workflows to integrate AI, compared with 56% of AI leaders, showing the need to move beyond simply adding AI tools.

Globally, companies in the top 20% for AI-driven performance generate 7.2 times more AI-driven revenue and efficiency gains than their peers.

PwC said these leaders are distinguished by strong foundations, reusable AI components, high-quality data and broader AI deployment across business functions.

The study was conducted from July to September 2025 and covered 1,217 director-level or above respondents globally. The Singapore sample comprised 30 respondents from publicly listed companies with revenue above US$100m.