With AI, can we make work human again?

AT THE National Day Rally 2025, Prime Minister Lawrence Wong framed artificial intelligence (AI) as a core economic engine for Singapore. The 2025 Budget followed suit, earmarking up to S$150 million for a new Enterprise Compute Initiative to help companies access advanced AI tools.

Yet, a paradox is emerging. Enterprise spending on AI is declining in Singapore – to 11.5 per cent of technology budgets this year, down from 15.5 per cent in 2024, according to ServiceNow’s Enterprise AI Maturity Index 2025 report. For a country lauded for its digital ambition, this raises an uncomfortable question: Why isn’t AI delivering the outcomes Singapore expects?

One concerning possibility is that Singapore’s investment in AI might not be addressing the right problems. Millions spent on training programmes and digital transformation initiatives have left many organisations feeling unprepared for AI.