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More than half of S’pore firms are advancing AI at scale as adoption accelerates in region, survey shows
The study by McKinsey, EDB and Tech in Asia finds firms across South-east Asia moving beyond artificial intelligence trials, with skills gaps emerging as a key hurdle
Singapore is among the regional leaders in AI adoption, with firms making progress towards scaling use, a study by McKinsey, EDB and Tech in Asia finds.
SOURCE: AI IN SOUTHEAST ASIA: AN ERA OF OPPORTUNITY REPORT
From analysing data to assisting customer service, artificial intelligence (AI) is becoming part of everyday work.
Across Singapore and South-east Asia, companies are moving from experimenting with AI to using it in daily operations, according to the AI in Southeast Asia: An Era of Opportunity report published on Feb 11, 2026 by McKinsey & Company, the Singapore Economic Development Board (EDB) and Tech in Asia.
Based on a survey with 330 executives across 10 industries, the study found that 81 per cent of firms in South-east Asia have moved past AI experimentation. In Singapore, 56 per cent of companies reported progress towards scaled AI adoption.
Singapore now hosts more than 60 AI centres of excellence, including those operated by Alibaba Cloud, IBM, Nvidia and Oracle, helping to bring new AI tools, jobs and training opportunities into the local workforce.
As investment and innovation in AI expands, concerns about job displacement are growing. Industry leaders emphasise that AI is reshaping roles rather than eliminating them, favouring those who learn to work alongside the technology.
Take a look at how companies across South-east Asia are adopting AI and the key trends shaping the region’s digital transformation.
This infographic was first published in Tech In Asia.
In the report, Mr Vikram Rao, director of growth markets and strategic accounts for ASEAN at Amazon Web Services, described AI as “the biggest opportunity since cloud computing and possibly even since the internet”.
He highlighted the need for both technical and non-technical training to prepare employees for an AI-driven future, advising young professionals entering the workforce to focus on strong fundamentals, systems thinking and intellectual curiosity.
Upskilling workers key to scaling AI adoption
Across the region, more companies are using AI to assist employees by automating repetitive tasks and supporting decision-making, while still relying on human oversight, particularly in customer-facing roles.
Yet a shortage of skilled workers remains the biggest obstacle to AI adoption, according to the report.
Filling the skills gap will be crucial to realising AI’s potential, and Singapore is tackling this through national workforce initiatives under its National AI Strategy 2.0. Programmes such as TechSkills Accelerator aim to improve AI literacy not only among engineers but also non-technical professionals, helping workers understand how to collaborate more effectively with AI tools in their roles.
Experts say future-ready skills include data literacy, critical thinking and the ability to work alongside AI systems – rather than technical coding expertise.
At regional technology firm Grab, AI models and AI-driven applications are available to its employees and ecosystem of partners to enhance efficiency and support, in turn improving top-line growth.
Said Mr Nikhil Dwarakanath, group head of data and analytics at Grab: “Merchants using the merchant AI assistant have seen their business grow by about 10 per cent.”
While AI can automate routine tasks, companies are also learning that human judgment remains essential.
At Grab, AI has reduced manual workload in areas such as customer support, but the technology still requires careful human supervision to maintain service quality.
Mr Dwarakanath emphasised that organisations must balance automation with responsibility, and that “we have to be intentional about upskilling but also meeting people where they are to provide support”.
