SINGAPORE: Over two-thirds of businesses in Singapore are cutting back on their investments in artificial intelligence (AI), citing a lack of trust in the technology, according to a recent report by Qlik that was published by the Singapore Business Review.
This trend is more pronounced in Singapore compared to the global average, highlighting significant concerns that continue to hinder the widespread adoption of AI despite its potential.
Trust issues hinder AI growth in Singapore
The report by Qlik reveals that 74% of businesses in Singapore have reduced their AI investments due to trust concerns, far surpassing the global average of 61%.
While 90% of senior decision-makers in Singapore agree that AI is crucial for business success, many face substantial barriers to its effective implementation.
Trust in AI remains one of the major obstacles, with both senior management (37%) and employees (42%) expressing doubt about the technology’s reliability and effectiveness.
Key challenges blocking AI implementation
In addition to trust issues, businesses in Singapore are grappling with several challenges that slow down AI adoption.
Data governance concerns (26%), budget constraints (28%), and a lack of trusted data for AI systems (26%) are major roadblocks.
Furthermore, there is a skills shortage, with 19% of businesses struggling to find professionals to develop AI solutions, and 23% facing difficulties in deploying them.
Singapore companies favour in-house AI development
Despite these challenges, businesses in Singapore appear more inclined to build their AI solutions internally.
According to Qlik’s report, 72% of businesses prefer to develop AI solutions in-house rather than rely on pre-built options, although 79% of decision-makers acknowledge the value of ready-made solutions.
This inclination towards internal development suggests that companies are seeking greater control over their AI projects, even as trust and resource limitations continue to affect their progress.
The report paints a picture of a market where potential and ambition exist, but trust and resource constraints are still significant barriers to full AI adoption.
