Staff Reporter
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Nearly seven in 10 remain short of advanced AI goals, said Autodesk.
Businesses remain optimistic about artificial intelligence (AI), but rising costs, fragmented systems and shortages of data capabilities are slowing their progress, according to Autodesk.
Technology and AI developments emerged as the leading organisational challenge for 46% of Singapore respondents in Autodesk’s 2027 State of Design & Make research. This placed the issue ahead of traditional cost concerns, cited by 42%.
Although 75% believed AI would improve their industries, the proportion of companies approaching or achieving their AI goals fell to 31% from 42%.
Nearly seven in 10, or 69%, remained in the early, middle or unstarted stages of their AI journeys. This was nine percentage points above the global average.
Autodesk said more sophisticated AI deployments require larger investments and stronger digital infrastructure.
Cost was the main barrier to digital transformation for 51% of Singapore respondents, up from 43% in 2025 and well above the 37% global average.
Another 37% cited insufficient technical knowledge, whilst the same proportion identified the time required to introduce new working practices as an obstacle.
Companies are responding by prioritising data skills. Data analytics became the top hiring priority for 49% of Singapore businesses, up from 39% in the previous year and compared with a global average of 34%.
Demand for data-science and data-management skills also increased to 39% from 32%.
Autodesk said advanced AI systems require unified and accurate information across operations, finance, projects and customer interactions. Without this context, autonomous AI agents may struggle to make reliable decisions.
Only 9% of Singapore respondents were classified by Autodesk as “Pacesetters,” or companies leading simultaneously in digital maturity, AI adoption and sustainability.
A separate Xero study of Singapore SMEs similarly found that adoption alone was not sufficient to generate reliable business outcomes.
About 94% of SMEs surveyed by Xero were already using AI, whilst 52% had incorporated it into their existing software workflows, including businesses using both embedded and standalone tools.
However, only 18% were very confident that their current software systems provided enough complete and connected data for AI to make reliable operational decisions.
Costs remained the biggest obstacle to expanding AI use among SMEs, cited by 38%. Insufficient employee skills followed this at 36%, regulatory and compliance requirements at 30%, and unclear internal governance policies at 29%.
Incompatible legacy systems and disorganised data were also identified as barriers by 27% and 26%, respectively.
Despite these constraints, 82% said returns from their AI investments had met or exceeded expectations. Another 69% planned to increase their spending on AI tools and software over the following 12 months.
Governance is also becoming more formalised. Among SMEs using AI, 67% had documented usage frameworks, whilst another 24% were developing internal guidelines.
Rather than treating AI mainly as a replacement for workers, 41% of respondents viewed it as a way to augment employees and free time for more strategic work. By comparison, 28% primarily associated AI with reducing headcount.
Autodesk’s Singapore findings were based on 150 respondents from the design and make industries. Xero’s research surveyed 1,018 SME owners and senior decision-makers.
Together, the studies indicate that Singapore companies have moved beyond basic AI experimentation, but converting adoption into sustainable results will depend on connected data, stronger employee capabilities, clear governance and manageable implementation costs.
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