Executives expect the growth rate of AI investments to more than double in the next two years. Meanwhile, just over half of Singapore CEOs (52%) are actively adopting AI agents and preparing to implement them at scale.
The IBM Institute for Business Value, in cooperation with Oxford Economics, surveyed 2,000 CEOs from 33 countries and 24 industries between February and April 2025. Among respondents, 68% represented publicly traded firms.
The study finds that 80% of Singapore CEOs are more likely than their 65% of their global counterparts to prioritise AI use cases based on ROI.
However, only 23% have reported that their AI initiatives have delivered expected returns so far, suggesting a mismatch between investment priorities and results realised.
Also, 58% of Singapore CEOs identify integrated enterprise-wide data architecture as critical for cross-functional collaboration, and 68% view their organisation’s proprietary data as key to unlocking the value of generative AI.
However, organisations may be struggling to cultivate an effective data environment: half (52%) of respondents acknowledge that the pace of recent investments has left their organisation with disconnected, piecemeal technology.
IBM vice chairman Gary Cohn said that as AI adoption accelerates creating greater efficiency, and productivity gains, the ultimate pay-off will only come to CEOs with the courage to embrace risk as opportunity. Meaning, focusing on what you can control, especially when there is so much you can’t.
“When the business environment is uncertain, using AI and your enterprise data to identify where you have leverage is a competitive advantage,” said Cohn. “At this point, leaders who aren’t leveraging AI and their own data to move forward are making a conscious business decision not to compete.”
Abraham Thomas, managing partner of IBM Consulting in ASEAN, said that business leaders in the region are under pressure to demonstrate ROI from AI while needing to invest in long-term capabilities to stay competitive. This balancing act is made even more complex by the region’s fragmented digital landscape, with varying national regulations and inconsistent standards for cross-border data flow.
“Singapore stands out with its national AI strategy, and businesses must follow suit by building adaptable data foundations and investing in talent that can turn AI ambition into real results,” said Thomas.
The study also found that CEOs face competing pressures of short-term ROI and long-term innovation. Only 23% of Singapore CEOs report that AI initiatives have delivered expected ROI over the last few years, and 14% have scaled enterprise-wide.
Just over half (52%) say their organisation is realising value from generative AI investments beyond cost reduction. Also, 77% acknowledge that the risk of falling behind drives investment in some technologies before they have a clear understanding of the value they bring to the organisation, but only 40% say it’s better to be “fast and wrong” than “right and slow” when it comes to technology adoption.
The study also found that CEOs are calling for more agility and budget flexibility, with 58% admitting their organisation struggles to balance funding for existing operations and investment in innovation when unexpected change occurs.
Meanwhile, 62% say more budget flexibility is needed to capitalise on digital opportunities that drive long-term growth and innovation.
The study also found that CEOs see strategic leadership and specialised talent as essential to unlocking AI value, amid expertise and skills gaps.
Three fourths (75%) of Singapore CEOs say their organisation’s success is directly tied to maintaining a broad group of leaders with a deep understanding of strategy and the authority to make critical decisions.
Among they, 72% say that differentiation depends on having the right expertise in the right positions with the right incentives.
CEOs say roughly one-third (32%) of the workforce will require retraining and/or reskilling over the next three years in Singapore, while 67% say their organisation will use automation to address skill gaps. Also, 48% say they are hiring for roles related to AI that did not exist a year ago.
