Singapore firms expand AI adoption, but struggle with data complexity and security
Singapore enterprises are rapidly adopting AI, but only 23% consider themselves industry leaders in achieving AI ROI, according to a Hitachi Vantara report. Data complexity and cybersecurity gaps are seen as key barriers to long-term value.
- High AI adoption in Singapore: 96% of firms are using AI, with 66% reporting early success.
- Low confidence in long-term ROI: Only 23% of organisations rate themselves as industry leaders in deriving sustained AI value.
- Data complexity and cybersecurity risks: Over half of Singapore firms say complex data hinders breach detection, raising strategic concerns.
Singapore-based companies are showing strong momentum in artificial intelligence (AI) adoption, but growing concerns about data complexity and cybersecurity risk are threatening the long-term return on investment, according to new research from Hitachi Vantara.
The findings come from the State of Data Infrastructure 2025 Report, a global study by Hitachi Vantara, a subsidiary of Hitachi Ltd. The research surveyed over 1,200 senior executives and IT leaders in 15 countries, including 51 respondents from Singapore.
The report highlights widespread AI usage across Singapore enterprises, with 96% of local respondents reporting AI adoption and two-thirds indicating early success. However, confidence drops when evaluating the long-term value of AI initiatives.
Only 23% of Singapore respondents rated their organisations as being industry-leading in achieving sustained returns on AI investments. This suggests that while deployment is advancing, many enterprises are not yet fully prepared to support AI at scale or derive consistent value.
Complexity and cybersecurity hinder progress
The study finds that as AI workloads expand, managing complex data environments is becoming a strategic risk. Singapore organisations report that sprawling data systems are making it more difficult to govern operations and detect security threats.
According to the report:
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52% of respondents say their organisation’s data complexity hinders their ability to detect security breaches.
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64% believe that if senior leadership fully understood the fragility of their data infrastructure, it would raise significant concern.
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66% report success in using AI, but fewer believe that success is sustainable without improved infrastructure.
These insights point to a growing disconnect between AI deployment and infrastructure maturity. Rather than solving foundational issues, the adoption of AI may be exposing them.
A shift toward risk-aware AI governance
Singapore enterprises appear to be maturing in their approach to AI. Rather than focusing solely on rapid scaling, many are prioritising governance, resilience, and trust.
“AI success is no longer about experimentation alone. It depends on whether data environments are resilient, governed and trusted,” said Joe Ong, Vice President and General Manager for ASEAN, Hitachi Vantara.
Ong added that while Singapore is ahead in adoption, the ability to manage complexity, ensure security, and maintain performance will determine future success.
This shift reflects growing expectations that AI must operate reliably and ethically, especially as it becomes embedded in core decision-making processes.
Moving from early success to sustained value
The study suggests that while awareness of data challenges is growing, many enterprises still struggle to translate that understanding into effective, long-term strategies.
As AI investment accelerates, organisations must simplify their data infrastructure, enhance governance, and improve visibility. These efforts are critical to transitioning from early AI wins to ongoing value creation.
The report concludes that resilience in data infrastructure is no longer optional—it is foundational to AI success in the years ahead.
For more information, including the full State of Data Infrastructure 2025 Report, visit www.hitachivantara.com.
