New MOM Report: AI Adoption Among Singapore Firms — What SMEs Need to Know

MOM's inaugural report examines AI adoption by firms in Singapore, with key takeaways for SMEs navigating the early stages of workplace AI integration.

1. Most Singapore firms have not adopted AI — 71.5% of firms have yet to adopt AI. Among the 28.5% that have started, only 3.8% have progressed to integrating AI into core processes, with the majority still at the planning (7.4%) or piloting (6.0%) stages.

2. Barriers to AI adoption differ by firm size — SMEs face high implementation costs (44.9%), a lack of in-house expertise (42.4%), and additional constraints such as absence of strategy (32.4%) and low trust in AI (30.8%). Larger firms instead cite integration complexity (56.1%) and data security concerns (55.4%).

A firm with fewer than 25 employees is three times less likely to have adopted AI (23.9%) compared to a firm with over 500 employees (76.4%), indicating a widening adoption gap that smaller businesses must address.

Tip: SMEs can tap on the Enterprise Workforce Transformation Package (EWTP) for job redesign and reskilling support, and encourage staff to take up subsidised AI courses — the Government provides six months of complimentary premium AI tool access for those who complete selected courses.

Source: https://www.mom.gov.sg/newsroom/press-releases/2026/0430-adoption-of-ai-among-firms