Singapore organizations double down on artificial intelligence (AI) but face growth challenges due to skills gap, Autodesk research showed Monday.
The study also finds that despite ongoing geopolitical and economic uncertainty, the majority of business leaders in Singapore are investing in AI, technology advancement, and sustainability across all industries, with efforts to overcome a technical skills shortage.
Autodesk said in a statement that AI sentiment remains largely positive in Singapore, and against economic headwinds, businesses may be viewing AI as a means to enhance their competitiveness.
Use cases for AI among design and make industries could also include automating resource-intensive tasks, enhancing creativity, and informing critical design decisions with data-backed insights, among others.
Recognizing AI’s potential to drive growth, many business leaders are now prioritizing investment in the technology.
According to they study, nearly three quarters (74 percent) of Singapore business leaders surveyed say AI will enhance their industry, above the Asia Pacific (APAC) average of 68 percent.
Meanwhile, nearly seven in ten (69 percent) feel that AI will make their industry more creative.
Three quarters (75 percent) say their investments in AI will increase, above the APAC average of 68 percent.
AI also ranked as the top investment priority among Singapore respondents (72 percent).
“Our research tells us that over 80% of business leaders in Singapore feel the global landscape is more unpredictable than ever. Cost control and management are now top priorities, likely due to rising business costs,
“These economic pressures are pushing businesses to eliminate inefficiencies, making digital-led growth through technologies like AI a necessity,” said Haresh Khoobchandani, Vice President, APAC & Japan, Autodesk.
According to the study, overall trust and confidence in AI remain high.
These sentiments may be influenced by the Singapore government’s ongoing support for AI, with considerable assistance provided to local businesses through initiatives like the S$150 million ($114 million) Enterprise Compute Initiative, aimed at accelerating enterprise AI adoption.
Despite AI’s potential for positive digital transformation, there is also recognition that this will disrupt traditional ways of working, necessitating new skill sets and new ways of working.
The study showed that nearly seven in ten (68 percent) Singapore business leaders trust AI technologies for their industry.
Meanwhile, 76 percent are confident that their companies will make the right decision when it comes to AI — above the APAC average of 68 percent.
More than half (54 percent) of Singapore business leaders agree that AI will destabilize their industry.
However, a talent crunch continues to impact business growth, said the study.
It noted leaders are struggling to attract, train, and retain talent, which is affecting their ability to effectively harness or manage technological advancements, including those made in AI.
More critically, talent constraints are also hampering overall business growth.
About a third (32 percent) of Singapore business leaders ranked attracting, training, and retaining talent among their top 3 challenges faced.
Three in ten (30 percent) also rank technological advancements, including AI, among their top three challenges.
More than six in ten (62 percent) also find the lack of access to skilled talent to be a barrier to their company’s growth.
Businesses are struggling to find employees with the right technical skills, which may lead to a premium being placed on AI skills when hiring, said the study.
In fact, less than half of local leaders say their organizations are approaching or have achieved their AI goals, suggesting potential challenges with implementation.
With AI implementation only as good as the quality of data it has access to, this may also lead to high demand for data-related skill sets when hiring.
About six in ten (61 percent) Singapore business leaders face challenges hiring new employees with the right technical skills.
Nearly half (47 percent) are prioritizing the ability to work with AI when hiring in the next few years.
This is followed by a focus on skills related to data analytics and insights, a priority among 39 percent when it comes to hiring.
Only four in ten (43 percent) say they are approaching or had already achieved their AI goals.
While Singapore businesses acknowledge the importance of upskilling, the study highlighted that many are finding it difficult to address these challenges with on-the-job training and continuous learning that could help their employees – and their businesses – keep up with the rapid pace of transformation.
More than seven in ten (71 percent) Singapore business leaders say their organizations are implementing skilling programs to mitigate the talent shortage.
However, more than half of professionals say they do not have the resources to design internal training programs.
More than six in ten (61 percent) say external training programs do not meet the needs of their organization, above the APAC average of 54 percent.
Autodesk also noted that a competitive economy and rapidly digitalizing landscape means that businesses must master AI skills to thrive, working alongside technology rather than against it.
It opined that industry leaders must bridge the gap between education and the demands of an AI-driven workforce by democratizing access to technology, working with educators to help create effective curriculums that reflect workforce needs, and increasing job awareness to connect the next generation to the most in-demand opportunities.
In Singapore, these efforts are driven at both a public and private level.
Business leaders can leverage the Enterprise Compute Initiative, which aims to close the AI capability gap by helping local enterprises, such as small and medium-sized enterprises (SMEs), adopt AI solutions tailored to their specific needs.
In addition, private sector-led initiatives such as the Autodesk Education Platform contribute to accelerating skilling efforts and diversifying the talent pipeline in Design and Make industries.
As businesses navigate economic pressures and shifting regulations, the study showed sustainability is becoming a necessity for long-term growth and resilience, driven by demand among customers, partners, and suppliers.
As more local leaders incorporate sustainability measures into their business strategies, this may reflect a growing trend of sustainability-linked regulation.
Beyond carbon tax, Singapore businesses, operating in a global trade hub, would also be increasingly required to comply with global environmental, social and governance (ESG) standards and reporting requirements.
It is noted that organizations in Singapore are using AI to achieve sustainability goals and are among the most likely in APAC to do so.
According to the study, nearly half (48 percent) of Singapore business leaders are using AI to be more sustainable, above the APAC average of 39 percent and ranking second in the region only after India (52 percent).
Singapore is on par with its APAC (94 percent) and global (95 percent) counterparts, with 96 percent of Singapore business leaders saying their organizations are making changes to be more sustainable.
When it comes to setting sustainability goals, the focus is influenced by customers (78 percent), partners (75 percent), and suppliers (60 percent).
Business leaders are increasingly recognizing the financial benefits of sustainability, with more than seven in ten (73 percent) believing it can generate more than 5 percent of their annual revenue.
“AI is packed with potential. Beyond generating innovative ideas, it can also take on more complex tasks, offering a major opportunity for Design and Make leaders to continue growing in today’s competitive landscape,” said Khoobchandani.
““The most successful businesses will be those able to close the skills gap. Beyond using their own resources, this means leveraging available government initiatives like SkillsFuture and the Enterprise Compute Initiative in addition to working with private-sector experts,
“This holistic approach will be key to help businesses move beyond the AI hype and start delivering real results,” he added.
For the 2025 State of Design & Make edition, Autodesk surveyed and interviewed 5,594 industry leaders, futurists, and experts across Design and Make industries: architecture, engineering, construction, and operations (AECO); design and manufacturing (D&M); and media and entertainment (M&E).
161 respondents from Singapore, and 2,152 respondents from APAC participated in the study.