Singapore chief executives see artificial intelligence as a major source of productivity gains, but many are struggling to convert those gains into measurable financial outcomes, according to EY-Parthenon’s latest CEO Outlook Survey.
The survey found that 45% of Singapore CEOs identified AI technologies as the single largest contributor to productivity gains over the past 12 months, ahead of business process redesign at 33%.
Half of Singapore respondents are reinvesting the additional capacity created by AI into innovation and transformation initiatives intended to support future growth. However, 20% said AI-driven gains are often absorbed before they translate into bottom-line results.
Sriram Changali, EY-Parthenon Asean and Singapore Strategy and Execution Leader, said productivity is only part of AI’s potential value. “Too often, CEOs and management teams deploy AI within individual functions rather than incorporate into the end-to-end workflow, from production through to consumption, to create value for customers,” he said.
Measuring AI returns
The survey highlights a widening gap between AI adoption and organisations’ ability to measure its financial impact. While 57% of Singapore CEOs report at least some reliable visibility into AI costs and returns, only 9% say they have clear, real-time visibility of return on investment. G
A further 30% of Singapore respondents can track some AI costs but remain limited in assessing overall ROI. According to the consulting firm, legacy systems, organisational complexity and regulatory requirements continue to limit value capture.
Changali urged boards and executive teams to identify AI-driven business models and value pools, then realign operating models, talent and capital allocation to turn AI from an efficiency tool into an engine for measurable value creation at scale.
Skills emerge as constraint
Workforce capability is becoming a central concern. Nearly all Singapore CEOs surveyed, 98%, believe AI will affect roles, skills and ways of working more than workforce size over the next three years.
However, 60% of Singapore respondents said their organisations are not developing AI skills quickly enough to keep pace with innovation. A striking 92% expect skills shortages to become a greater barrier to growth than access to capital within three years.
Reskilling is already cited by 50% of Singapore CEOs as a key driver of productivity, yet only 22% say productivity gains are being reinvested in workforce development.
Changali said AI literacy must be built at every level, including among boards and C-suite leaders, to distinguish experimentation from enterprise value.
Growth through portfolio choices
Rather than pursuing rapid market expansion, 72% of Singapore CEOs say their growth strategy focuses on strengthening the existing business.
Eighty-five per cent plan some form of transaction in the next 12 months, including acquisitions, strategic alliances, joint ventures and divestments.
AI is increasingly being applied across deal-making: 60% of Singapore CEOs are piloting AI in selected transaction activities, while 32% use it across multiple or most activities.
Respondents see the greatest opportunity in identifying value earlier and accelerating deal execution.
“Applied across the deal lifecycle, it can accelerate diligence, sharpen valuation, identify synergies and risks earlier, and strengthen either post-deal value creation or integration,” said Geophin George, EY-Parthenon Asean Transactions and Corporate Finance Leader.
