A Ministry of Manpower survey of 2,560 Singapore companies found that approximately 70% have not adopted artificial intelligence in their operations, even as the government announced a new tripartite body to coordinate workforce and enterprise transformation in response to accelerating AI disruption.
Key Facts At A Glance
- MOM survey conducted January to March 2026, covering 2,560 firms employing nearly 500,000 workers
- 71.5% of surveyed companies reported no AI adoption; only 3.8% have integrated AI into core operations
- Among firms that adopted AI, 70.7% reported improved productivity
- 6.2% of AI-adopting firms reduced headcount; 18.9% redesigned roles; 13.9% created new AI-related positions
- AI uptake among SMEs was 14.5% in 2024, compared to more than 60% at companies with over 500 employees
- The Tripartite Jobs Council was announced on April 29, 2026, co-chaired by Manpower Minister Tan See Leng, NTUC Secretary-General Ng Chee Meng, and SNEF President Tan Hee Teck
- Government’s SkillsFuture Workforce Development Grant provides up to S$150,000 per company for job redesign and AI adoption costs
Seven In Ten Singapore Firms Yet To Adopt AI
The Ministry of Manpower released its inaugural report on artificial intelligence adoption among firms in Singapore on April 30, 2026, drawing on a survey of 2,560 businesses covering a workforce of nearly 500,000. The headline finding, that approximately 71.5% of companies have not adopted AI, stands in contrast to Singapore’s positioning as one of Asia’s most digitally competitive economies.
Among firms that have begun AI adoption, the report identifies a clear progression gap. Only 3.8% have reached the stage of integrating AI into core business processes. A further 6.0% remain at the piloting stage, while 7.4% are still at the planning phase. The data suggests that while a segment of Singapore’s corporate sector is actively engaging with AI, full operational integration remains limited to a narrow base.
Where adoption has taken hold, the business case appears substantive. Around 70.7% of firms that adopted AI reported improved productivity, according to the MOM report. The evidence on workforce impact is more nuanced. Only 6.2% of AI-adopting firms reported reducing headcount as a result, while 18.9% said they had redesigned roles and 13.9% indicated they had created new AI-related positions. MOM described the pattern as one of augmentation rather than displacement, noting that AI is primarily transforming tasks rather than replacing roles outright.
The Adoption Gap Between Large Firms And SMEs
The MOM data reveals a significant structural divide in AI adoption along firm size. Companies with more than 500 employees have recorded adoption rates above 60%, while small and medium-sized enterprises remained at 14.5% in 2024, up from 4.2% the year prior, according to the Singapore Digital Economy Report 2025. The trajectory is upward, but the gap between larger and smaller firms is wide and, if left unaddressed, risks widening further.
Cost and capability are the primary barriers cited across firm types. For smaller firms, 44.9% pointed to high implementation costs and 42.4% cited a lack of in-house expertise. Low trust in AI (30.8%) and the absence of a clear internal strategy (32.4%) were also prominent. Larger firms face a different set of challenges: integration complexity with existing systems was cited by 56.1% of larger-firm respondents, and data security concerns by 55.4%.
Sector patterns also inform the picture. AI adoption is highest in information and communications, professional services, and financial services, where analytical and coding tasks are more readily augmented by AI tools. Retail and food and beverage sectors lag, given the physical and customer-facing nature of much of their work.
The Tripartite Jobs Council: A Coordinated Government Response
One day before the MOM report was released, Singapore’s tripartite partners jointly announced the formation of the Tripartite Jobs Council on April 29, 2026. The council brings together the Ministry of Manpower, the National Trades Union Congress, and the Singapore National Employers Federation as a centralised coordinating body for workforce upskilling and enterprise job redesign across every sector.
Minister for Manpower Tan See Leng co-chairs the council alongside NTUC Secretary-General Ng Chee Meng and SNEF President Tan Hee Teck. The council’s mandate covers three principal areas: coordinated support for enterprise workforce transformation in tandem with AI adoption; broad-based and sector-specific training for workers with targeted transition support for at-risk occupations; and public awareness efforts to drive uptake of available initiatives.
Prime Minister Lawrence Wong, speaking at the May Day Rally on May 1, endorsed the council’s formation and outlined the government’s underlying position. “We may not be able to protect every job. But we will protect every worker,” he said, framing AI as the defining technology reshaping the global economy and acknowledging that disruption is inevitable.
Programmes Backing The Strategy
Alongside the council’s formation, several specific programmes were confirmed. The government’s Enterprise Workforce Transformation Package, anchored by the SkillsFuture Workforce Development Grant, provides up to S$150,000 per company to fund job redesign projects, reskilling, and AI adoption costs. SNEF was appointed as an anchor programme partner, with in-house advisors tasked with helping employers assess AI’s applicability to their specific operations.
On the worker side, SkillsFuture Singapore is developing a self-diagnostic tool to help individuals assess their AI readiness, expected to be made available online during 2026. NTUC confirmed that from May 1, 2026, members can use their Union Training Assistance Programme benefits to access more than 20 eligible AI tools at up to 50% off subscription costs. The NTUC AI-Ready SG initiative, launched in February 2026, has already recorded more than 4,000 worker enrolments in AI training courses, according to NTUC.
The Infocomm Media Development Authority is separately expanding its TechSkills Accelerator programme to develop AI-bilingual workers, beginning with accountancy and legal professionals. The broader intent is to ensure that AI literacy is distributed across the workforce rather than concentrated within already tech-intensive roles.
The council will complement the National AI Council, an inter-ministerial body chaired by Prime Minister Wong, which is driving AI adoption in four priority sectors: advanced manufacturing, transport connectivity, finance, and healthcare.