Inaugural Release of Report on Adoption of Artificial Intelligence Among Firms

Overview

MOM is releasing an inaugural report on AI adoption among firms, examining the extent of adoption, its workforce implications, and firms’ forward-looking strategies. Overall, AI adoption remains at an early stage; majority of firms have yet to adopt AI. Amongst those who have, adoption is uneven. While AI is already delivering productivity gains for some firms, there is no indication of significant job displacement at this point. 

Key Findings

AI adoption remains limited and is more prevalent among larger firms

2. A majority of firms¹ (71.5%) have yet to adopt AI. Among the 28.5% that have started, meaningful integration remains limited – only a small share (3.8%) is integrating AI into core processes and most remain at planning (7.4%) or piloting (6.0%) stages.

3. Adoption rises from 23.9% among firms with fewer than 25 employees to 76.4% among the larger firms. Firms with more than 500 employees also show deeper integration, reflecting stronger digital capabilities and resources.

Digitally intensive and knowledge-based sectors are more progressive in AI adoption

4. AI adoption is highest in sectors such as Information and Communications (74.1%), Professional Services (57.5%), and Financial and Insurance Services (56.4%). These sectors are characterised by jobs with a higher share of tasks that can be automated or augmented by AI,² in the areas of software development, systems analysis and data analytics, for example. The digitally fluent PMET workforce in these sectors are well-positioned to adopt and work alongside AI tools effectively.

AI is augmenting but not replacing labour

5. There is no indication of widespread job displacement. Only 6.2% of firms reported reduced headcount after adopting AI. Instead, firms are redesigning roles (18.9%) and creating new AI-related jobs (13.9%), indicating that AI is primarily transforming tasks rather than replacing roles.

Productivity gains are already evident

6. Among firms using AI, 70.7% report improvements in worker productivity, alongside gains in decision-making (13.3%) and innovation (11.9%).

Structural barriers continue to constrain uptake

7. High implementation costs (44.9%) and lack of in-house expertise (42.4%) are the most commonly cited constraints. Smaller firms face additional challenges such as lack of strategy (32.4%) and low trust in AI (30.8%), while larger firms face integration complexity (56.1%) and data security concerns (55.4%).

Firms are beginning to build capabilities for AI adoption and support workforce adaptation

8. Smaller firms are focused on foundational steps such as training (46.6% of AI-adopting firms) and provision of AI tools such as ChatGPT, DeepSeek and IBM Cognos Analytics (41.1%), while larger firms are moving towards governance frameworks (37.5%) and workflow redesign (22.5%). Workforce adjustments are taking place mainly within firms rather than across sectors.

Conclusion

9. AI is reshaping work and creating opportunities to improve productivity. The key challenge is whether firms and workers can keep pace: smaller firms risk falling further behind on adoption, while workers who do not upskill risk being left behind as AI transforms our day-to-day tasks. 

10. The Government has established the National AI Council (NAIC) to coordinate and drive Singapore's AI strategy. The NAIC will oversee the development and execution of AI missions in key sectors of our economy, namely advanced manufacturing, connectivity, finance and healthcare. To support AI adoption, firms can tap on the recently launched Enterprise Workforce Transformation Package (EWTP) to undertake job redesign, reskilling and building the organisational capabilities needed to translate AI adoption into better workforce outcomes. SkillsFuture Singapore (SSG) will introduce simple self-diagnostic tools to help workers assess their AI-readiness and identify suitable courses suited to their needs. The Government will also be providing six months of complimentary access to premium versions of AI tools for Singaporeans who take up selected AI courses. Workers can tap on these to build up their AI proficiency. 

For More Information

11. MOM’s “Artificial Intelligence Adoption Among Firms” report will be released on 30 April 2026 by the Manpower Research and Statistics Department. The full report will be available at stats.mom.gov.sg.