Lack of Trust in AI Tech Leads Singaporean Companies to Cut Investments

Although Singapore is more active in the development of AI technology compared to many other countries, a recent survey reveals that many local business leaders still have reservations about AI. As a result, over two-thirds of companies have slowed down their investments in the fi

The survey, conducted by international data analytics firm Qlik, involved 4,200 C-suite executives and AI decision-makers worldwide. It found that Singaporean companies face more pronounced challenges in advancing

Notably, 34% of Singaporean firms have more than 50 AI-related projects still in the evaluation or planning stages, far exceeding the global average of 11%. Additionally, 11% of local companies reported having over 50 AI projects that were either halted or canceled, which is also h

The report identifies a widespread "crisis of trust" as a primary barrier to AI investment. Qlik's research shows that 37% of executives globally acknowledge a lack of trust in AI among senior leadership, 42% believe senior employees are wary of the technology, and 21% say their customers also express skepticism toward AI.

This "trust crisis" has led 61% of executives worldwide to delay AI investments. In Singapore, this figure is even higher, with 74% of executives stating that mistrust has hindered their companies' progress in AI investment.

Challenges Faced by Companies: Budget Constraints Among Key Barriers to AI Initiatives

Apart from trust issues, Singaporean companies face other challenges in implementing AI projects, including data governance, budget constraints, and manpower shortages.

Among local business leaders surveyed, 28% cited "limited budget" as a significant barrier to advancing AI initiatives. Another 26% highlighted challenges related to access to reliable data and compliance with data regulations.

Furthermore, 23% of executives noted that companies lack the necessary skills to launch AI products immediately after development, while 19% said they face difficulties in acquiring the technical capabilities required to develop and deploy AI technologies.

Qlik emphasized that to achieve a return on investment in AI and enhance competitiveness, companies must bridge the gap between project planning and successful deployment.

The cautious approach of Singaporean executives toward AI technology is also reflected in their development strategy. Currently, 72% of AI projects in Singapore are developed in-house, with 67% of surveyed executives agreeing that internal development is preferable to outsourcing.

In contrast, the global trend shows that 79% of AI decision-makers support the use of "off-the-shelf" AI solutions as a foundation to boost their in-house development capabilities.