"Artificial intelligence (AI) has been widely hyped as a lever for labour efficiency - but expected wage-cost savings have not consistently materialised across Asia-Pacific (APAC) markets, as noted in recent analysis of AI ROI trends. The global picture supports this caution. PwC's latest Global CEO Survey finds that only 12% of CEOs say AI has delivered both cost reduction and revenue growth, while 56% report that it has delivered neither benefit so far - a stark reality check for leaders banking on transformational returns."
"Singapore enterprises are not under-investing. Organisations here report spending an average of S$18.9 million per AI initiative in 2025. Yet only 23% say those investments have delivered expected returns, suggesting a gap between ambition and measurable payoff. For CIOs, the question is not whether AI has strategic potential. It is whether that potential translates into financial outcomes under real operating constraints."
AI has been widely promoted as a lever for labour efficiency, but expected wage-cost savings have not consistently materialised across Asia-Pacific markets. PwC's Global CEO Survey finds only 12% of CEOs report AI has delivered both cost reduction and revenue growth, while 56% report no benefits so far. Singapore enterprises report average spending of S$18.9 million per AI initiative in 2025, yet only 23% say those investments delivered expected returns. Singapore's high wage levels, concentration of regional HQs, rising cloud and cybersecurity costs, and strict regulatory expectations increase governance and compliance requirements. Budget 2026 establishes a National AI Council to coordinate AI strategy, missions, and investment across priority sectors to scale adoption responsibly rather than through isolated pilots.
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