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Singapore businesses embrace AI amidst skills gap challenges

Newsflash Asia

- April 21, 2025

Singaporean businesses are increasingly investing in artificial intelligence (AI) to drive digital transformation, according to Autodesk’s 2025 State of Design & Make report. The study, which surveyed over 2,000 respondents across the Asia-Pacific region, including 161 from Singapore, highlights that 72% of local business leaders prioritise AI investments. However, a significant skills gap poses a challenge, with 62% of leaders citing a lack of skilled talent as a barrier to growth.

The report underscores the confidence in AI among Singaporean leaders, with 76% expressing trust in their company’s AI decision-making capabilities, surpassing the Asia-Pacific average of 68%. Despite this optimism, 54% acknowledge that AI could destabilise their industries, indicating a need for new skill sets and work methods.

The skills shortage is a pressing issue, with 32% of leaders ranking talent attraction and retention as a top challenge. This shortage is exacerbated by the rapid pace of technological advancements, including AI, which 30% of leaders also identify as a primary concern. As a result, nearly half of the leaders are prioritising AI skills in their hiring processes.

Efforts to address the talent gap include implementing skilling programmes, as reported by 71% of leaders. However, over half of the professionals lack resources to design effective internal training, and 61% find external programmes inadequate.

In addition to AI, sustainability is a growing focus, with 48% of leaders using AI to enhance sustainability efforts, ranking Singapore second in the region after India. As businesses navigate these challenges, leveraging government initiatives and private sector expertise will be crucial for closing the skills gap and achieving sustainable growth.
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This story was selected and published by a human editor, with content adapted from original press material using AI tools. Spot an error? Report it here.

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