SINGAPORE, Dec. 1, 2025 /PRNewswire/ — Singapore businesses are rapidly embracing digital transformation, with strong uptake of artificial intelligence (AI) and data analytics tools, but continue to lag in cybersecurity maturity, according to the latest survey by global professional accounting body CPA Australia.
The annual Business Technology Survey found that 95 per cent of businesses in Singapore use data analytics and visualisation software such as Python, Power BI and Excel, slightly above the survey average of 93 per cent.
Artificial Intelligence (AI) adoption follows closely at 92 per cent, also ahead of the survey average of 89 per cent. Nearly one in five organisations in Singapore have deeply embedded AI across their business operations, positioning Singapore as a front-runner in strategic AI use.
However, the most common form of AI use remains ad-hoc and occasional adoption, reported by 44 per cent of organisations. This typically involves deploying readily available AI tools such as ChatGPT, Microsoft Copilot and Google Gemini, and using AI assistants embedded in productivity platforms such as Microsoft 365 and Google Workspace.
CPA Australia Singapore Divisional President, and Digital Business and Risk Services Leader at PwC Singapore, Greg Unsworth, said: “Singapore’s strong foothold in AI reflects the nation’s continued push towards digital transformation and operational excellence. However, businesses must move beyond experimentation and strategically integrate AI across functions to unlock its full value.”
Despite the strong digital adoption, Singapore’s cybersecurity maturity remains a key vulnerability. Only 23 per cent of businesses have fully integrated cybersecurity into their business strategy and operations, below the survey average of 28 per cent.
Further, 69 per cent of businesses report using cybersecurity software, trailing the survey average of 81 per cent. This presents a deep concern as organisations may be exposed to increased risk as they expand their digital footprints.
The survey revealed that 17 per cent of organisations take a reactive approach to cyber threats, only responding to threats as they arise rather than through structured prevention. Additionally, 11 per cent are unsure how cybersecurity is managed internally, pointing to gaps in governance and communication.
“Cybersecurity must be a strategic priority as digital adoption accelerates,” Mr Unsworth said. “The rise of AI-enabled threats, from sophisticated phishing to deepfake impersonation, makes it critical for businesses to strengthen their cyber resilience. Trust must be earned and reinforced through every digital interaction.”
Respondents highlighted the notable benefits from AI adoption. Over the past year, Singapore businesses have leveraged technology to streamline workflows, automate repetitive tasks, and enabled greater speed and precision in decision-making. These gains have translated into better employee experiences, with staff spending less time on mundane tasks and more time on higher-value tasks. At the same time, customer experience has improved as organisations use AI to deliver more personalised, responsive and data-informed services.
However, these benefits are accompanied by challenges. Growing reliance on AI raises concerns around human oversight and accountability, especially in decisions requiring judgement or ethical considerations. Some organisations are experiencing job displacement in routine or entry-level roles, and many continue to struggle with integrating AI into legacy systems.
Cultural and organisational barriers, such as resistance to change and limited staff buy-in and lack of understanding and trust in AI technologies, also hinder adoption. These issues are compounded by high implementation costs, uncertain returns on investment, limited digital literacy among senior leaders, a shortage of technology talent, and intensifying data privacy and security concerns.
Despite these hurdles, AI remains essential for businesses looking to stay competitive.
CPA Australia member and Director & Head of OCISO, APJ for Google Cloud, Daryl Pereira said: “AI’s potential is transformative, yet it remains a powerful co-worker, not a replacement for human ingenuity. As businesses accelerate AI adoption, they must be deliberate in preserving and elevating valuable human skills. The shift requires organisational leadership to proactively rethink roles, redesign workflows, and invest heavily in continuous learning. By prioritising upskilling and fostering cross-functional collaboration, companies can maintain a competitive edge and empower their teams to innovate responsibly.”
As Singapore continues to lead in digital adoption, investing in cybersecurity maturity and fostering a culture of responsible innovation, businesses can unlock the full potential of AI and data to drive sustainable growth and global competitiveness.
Find out more at cpaaustralia.com.au
