SINGAPORE – About one in six Singapore organisations is now a leader in artificial intelligence use, according to research by IDC commissioned by Microsoft, which suggests local firms are starting to see real business returns from AI.
The findings were shared on Monday at an event in Singapore that drew more than 2,500 business and technology leaders. IDC classed 17% of Singapore organisations as “Frontier Firms”, meaning companies with strong AI strategies that achieve higher returns on investment and better business outcomes. The global figure is 10%.
Most firms at mid to high AI maturity
IDC’s maturity scale looks at spending discipline, breadth of use, adoption of AI agents, skills, confidence in managing AI risks and results achieved. In Singapore, 73% of organisations have reached the middle or highest levels of maturity, compared with 70% worldwide. The local findings are based on a survey of 200 respondents, and the report says more mature firms also show higher levels of trust and governance.
On results, 68% of Singapore businesses reported significant or transformative outcomes that were not previously possible, and 41% said AI is growing revenue or creating new revenue streams.
Microsoft says the next step is scaling with trust
Chia Wee Luen, managing director of Microsoft Singapore, said the country ranks second globally on AI diffusion, but adoption was only the starting point. He said the next phase would be defined by who scales AI with trust, by rethinking workflows, equipping staff, strengthening governance and measuring the value created.
Judson Althoff, CEO of Microsoft’s commercial business, said Singapore was well placed to turn its AI leadership into lasting economic and social impact.
IDC identified four priorities for firms aiming to become Frontier Firms: build for intelligence, operationalise trust and observability, advance agentic workflows, and measure and optimise value.
Examples from public and private sectors
- CPF Board: The agency that administers Singapore’s social security system is using AI in everyday work to help staff focus on higher-value tasks.
- Genspark: The AI-native company, built on Microsoft Azure, reached US$250 million in annual recurring revenue within 12 months of launch, according to Microsoft.
- Seatrium: The offshore and marine engineering group is working with Microsoft to build a digital twin foundation to improve asset use and project delivery.
Microsoft said it is on track to invest US$5.5 billion in Singapore between 2025 and 2029 across cloud and AI infrastructure and operations.
The study was commissioned by Microsoft. Figures are as reported by Microsoft from IDC research.
