SINGAPORE:Â Singapore has reported the highest rate of AI-related incidents in Southeast Asia, with 35% of respondents experiencing such issues in the past financial year, according to a recent report by Deloitte. The findings highlight the challenges faced by businesses in navigating the rapid adoption of artificial intelligence technologies.
The report also reveals widespread apprehension among organisations, with 96% of respondents identifying security vulnerabilities and 94% citing privacy breaches as key risks associated with AI deployment.
Despite Singapore’s leadership in AI adoption across the region, confidence in workforce readiness remains alarmingly low.
Only 50% of respondents believe their employees possess the skills required to use AI responsibly, marking the lowest confidence level in Southeast Asia. To address this gap, nearly 70% of organisations are prioritising the recruitment of specialised AI talent over reskilling existing staff.
The emphasis on AI governance is growing, with businesses in Singapore aiming to enhance customer reputation (43%), build trust in AI outputs (43%), and improve regulatory compliance (39%) through effective governance frameworks.
Across the broader Asia-Pacific region, the benefits of mature AI governance are becoming clear. Organisations with well-established frameworks reported a 28% increase in AI adoption among staff and implemented AI solutions in at least three business areas.
Additionally, these organisations achieved nearly 5% higher revenue growth compared to their counterparts with less developed governance practices.
The findings highlight the dual challenge facing businesses in Singapore: balancing the rapid adoption of AI with the need to mitigate risks and ensure their workforce is adequately prepared for the transformative potential of these technologies.
