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Singapore businesses accelerate AI adoption, digital economy expands

Artificial intelligence adoption among Singapore enterprises has surged to nearly a quarter of businesses, according to the latest Digital Economy Report. The shift underscores the city-state's growing reliance on digital technologies to drive economic growth.

LSN Singapore · 5 October 2026

Singapore businesses accelerate AI adoption, digital economy expands

Adoption of artificial intelligence among Singapore enterprises jumped to 23.5 per cent in 2025, up from 14.7 per cent the previous year, marking a significant acceleration in technology uptake across the business sector.

The figures come from the Singapore Digital Economy Report released by the Infocomm Media Development Authority (IMDA), which tracks the progress of digital transformation initiatives across the region's key economic hub.

The nearly nine-percentage-point increase reflects growing recognition among business leaders of AI's potential to enhance operational efficiency, improve decision-making processes, and create competitive advantages in an increasingly digitalised marketplace.

Beyond artificial intelligence adoption, the broader digital economy continues to represent an expanding share of Singapore's gross domestic product, underscoring the economy's structural shift toward technology-driven sectors and digital services.

The momentum in AI integration is expected to continue as businesses across sectors—from financial services and healthcare to manufacturing and retail—increasingly embed intelligent automation into their core operations.