SMEs in Singapore have significantly increased their AI adoption, with 14.5% implementing AI in 2024—more than three times the rate from 2023—and nearly all adopting at least one digital solution, reflecting a rapid digital transformation.

The overall digital adoption among enterprises reached 95.1%, with SMEs averaging 2.3 digital areas, and their digital intensity continuing to grow, driven by widespread AI integration.

SMEs leveraging AI solutions are experiencing substantial cost savings, averaging 52%, with those adopting AI cybersecurity saving up to 71%, and many integrating AI into HR and accounting functions.

The Singapore government and IMDA are actively investing in digital infrastructure and frontier technologies like Embodied AI, Quantum Computing, and Communications to maintain the country's competitive edge in the digital economy.

IMDA's initiatives, including the Digital Leaders Programme and GenAI Sandbox, are helping companies like NewGens, Nanyang Inc, and Thomson Medical enhance their digital capabilities and achieve operational efficiencies.

Singapore's digital economy grew to S$128.1 billion in 2024, representing 18.6% of GDP, driven by broad digitalisation across industries beyond tech, with the tech workforce expanding to 214,000 and commanding high wages.

The growth in tech jobs is especially notable in non-ICT sectors, which saw a 3.9% increase, and the median monthly wages for local tech workers remain high at around S$7,950.

AI use in the workplace is widespread, with nearly 74% of workers regularly using AI tools for tasks like brainstorming and administrative work, supported by employer-provided training and resources.

Most employers support AI adoption through training, paid tools, and policies, leading to productivity improvements, with 85% of AI users reporting enhanced efficiency.

AI adoption among firms and workers is accelerating, with 75% of workers regularly using AI tools, and many companies reporting significant productivity gains.

Businesses are embedding AI across multiple functions, utilizing off-the-shelf, tailored, and proprietary solutions, and focusing on workforce upskilling and job redesign to maximize AI's benefits.

The majority of AI-adopting firms (84%) use off-the-shelf generative AI tools, while 44% employ customized or proprietary AI solutions, indicating diverse approaches to AI integration.

Case studies highlight successful digital transformation: NewGens improved hiring efficiency by 50%, Nanyang Inc reduced order-processing time by 67%, and Thomson Medical developed an AI-based discharge system that saves time and increases revenue.