AI goes mainstream in Singapore as digital economy reaches S$144.1 billion
Source: CNA Tech
Almost one in four Singapore firms now use AI, up from roughly one in seven a year earlier, as the country's digital economy grows to S$144.1 billion.
Singapore's digital economy has grown to S$144.1 billion, and the country's businesses have moved on artificial intelligence far faster than they did a year ago. Close to one in four local firms had AI in use during 2025, against roughly one in seven twelve months before, the Singapore Digital Economy Report shows.
Those two figures — the adoption rate and the sector's worth — come from the same set of findings. The comparison is stark because it spans a single year: AI has gone from something a minority of companies touched to something approaching standard practice. There is no ambiguity about the direction of travel.
The report's headline number is the S$144.1 billion valuation attached to Singapore's digital economy. Paired with it is the AI statistic, which shows adoption spreading well beyond a narrow group of technology firms. Together they suggest the tools have become a normal part of running a business rather than an exotic add-on.
What does that mean for industry? Adoption is turning into a baseline expectation rather than a competitive edge. Companies that stay on the sidelines will be trying to match rivals whose operations run leaner and respond quicker, and they will be doing it from behind. Toolmakers and integrators, for their part, face a customer base that no longer needs convincing AI is worth a look.
Why it matters for Singapore: The republic has built much of its growth story around being a digital hub, so the pace at which its own companies take up AI is a direct test of that strategy. With almost a quarter of firms already on board, the pitch to global investors and talent holds up — and the pressure on everyone else to close the gap keeps rising.
