The city-state emerges as a frontrunner in AI integration, overcoming challenges related to data quality and security.
Singapore is rapidly establishing itself as a global leader in the field of artificial intelligence (AI), with over half (57%) of local organisations identifying AI as essential to their business operations. This places Singapore at the forefront of AI adoption, outperforming the regional average of 42% and the global average of 37%, according to a report by cloud solutions firm Hitachi Vantara.
However, despite its impressive adoption rate, Singaporean companies face significant hurdles in leveraging AI to its fullest potential. One of the primary challenges is the accuracy of AI models, with reports showing that only 32% of outputs produced by AI in the country are reliable. This highlights the ongoing difficulty in refining the vast and complex data sets required for AI systems to operate effectively.
In addition to accuracy issues, data accessibility presents another roadblock. Businesses report that they can only access the necessary data 34% of the time. Further complicating matters, a substantial portion (70%) of the data used for AI in Singapore remains unstructured, disorganised, and difficult to work with.
These data-related challenges are expected to worsen, as demand for data storage in Asia is forecast to increase by 123% within the next two years. This will add further strain to the implementation of AI technologies. Moreover, data security is a growing concern, with nearly half (44%) of businesses in Asia identifying it as a major issue, surpassing the global average of 38%. Countries like Singapore, India, and Indonesia are especially sensitive to these concerns, which continue to pose a significant barrier to AI adoption.
Despite these challenges, Singapore remains undeterred in its AI ambitions. The city-state is actively recruiting AI talent and ranks among the highest in Asia for engaging with AI experts. Singapore, along with other nations such as Indonesia, India, and China, is ramping up its investments in external AI specialists, further accelerating the region’s drive toward AI integration.
As businesses continue to grapple with data and security challenges, Singapore’s commitment to investing in AI and talent acquisition ensures its position as a leader in AI innovation in Asia and globally.
