Singapore loves AI on paper. Autodesk’s new study finds that in practice, nearly seven in 10 firms are stuck mid-journey, tripped up by costs and messy data.
Nearly seven in 10 Singapore businesses in the design-and-make industries have yet to reach their AI goals, and technology and AI have become their top organizational challenge, according to a new study from Autodesk.
The company’s 2027 State of Design & Make report surveyed firms in architecture, engineering, construction and operations; design and manufacturing; and media and entertainment. It found that rising costs and fragmented digital foundations are widening the gap between AI ambitions and business returns.
Enterprise AI has been a boardroom priority in Singapore, helped by government grants and support. National initiatives have more recently focused on autonomous and agentic AI. According to Deloitte, 72% of Singapore businesses plan to deploy agentic AI in several operational areas within two years.
But obstacles tied to technology and AI advances are now the leading organizational challenge for 46% of Singapore businesses, ahead of traditional cost concerns at 42%, according to Autodesk.
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Complex AI deployments expose gaps
Optimism remains high. Three-quarters of Singapore respondents (75%) agreed that AI will enhance their industry, in line with the global average of 73%. Putting advanced AI to work has proved harder.
The share of Singapore companies approaching or achieving their AI goals fell from 42% to 31%. Some 69% remain in the early, middle or unstarted stages of their AI journeys, 9 percentage points above the global average of 60%.
Autodesk said more sophisticated deployments require significantly more capital and resources, which has added to financial pressure. Cost is now the main barrier to digital transformation for 51% of Singapore businesses, up from 43% in 2025 and well above the global average of 37%.
Capability gaps are also a factor. Thirty-seven percent of Singapore businesses cited a lack of technical knowledge to implement digital solutions, and the same share cited the time needed to adopt new ways of working.
Data skills move up the hiring list
National upskilling programs such as SkillsFuture have raised AI capabilities in the local workforce, Autodesk said, but firms are discovering that advanced AI needs high-quality data foundations.
The company said AI tools depend on unified, real-time data across operations, finance, project execution and client interactions. Without a single source of truth, it said, they will struggle to deliver value. That matters most for AI agents, which carry out multistep workflows on their own. Without cross-functional context, Autodesk said, agents cannot weigh trade-offs or act safely, which creates operational vulnerabilities and heightens regulatory risk.
Hiring reflects the shift. Data analytics is now the top hiring priority for 49% of Singapore businesses, up from 39% in 2025 and far above the global average of 34%. Demand for data science and data management skills rose to 39% from 32%.
“With AI becoming table stakes for modern businesses, finding the right AI applications is only half the equation,” said Haresh Khoobchandani, vice president for Asia Pacific at Autodesk. “Building robust, connected digital foundations to support these engines of growth is equally vital, especially as regulatory frameworks increasingly focus on ensuring safe, ethical and responsible AI deployment.”
“Organizations cannot afford to overlook this groundwork, with any misstep in execution or compliance easily causing them to fall behind their peers. Successfully navigating this transition requires leaning on established frameworks and resources from across both the public and private sectors to ensure safe, sustainable deployment.”
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What the leaders do differently
The report found that 11% of organizations worldwide, which it calls Pacesetters, lead simultaneously on digital maturity, AI adoption and sustainability. Globally, Pacesetters are 85% more likely to exceed performance expectations. They prioritize connecting systems through APIs (91%), dedicated AI integration teams (94%) and internal data accuracy (93%). Among mainstream organizations, only half (50%) exceed their goals, and fewer prioritize API integration (60%), dedicated AI teams (61%) or data accuracy (74%).
In Singapore, 9% of respondents are Pacesetters. Autodesk cited Singapore-based RSP Architects Planners & Engineers, which built a single source of truth across its workflows. The company said this helped its teams evaluate design risks more effectively and deliver complex projects on schedule.
“As Singapore positions itself at the forefront of agentic AI, working towards its AI hub aspirations, the winners won’t simply be those who deploy tools fastest,” Khoobchandani said. “Real market leadership will belong to businesses that build interconnected, context-rich environments where advanced AI can act safely, accurately and at scale.”
