Singapore firms report AI momentum, but long-term value is threatened

Singapore businesses are actively adopting AI, but growing data complexity and security challenges risk undermining long-term returns, according to new research from Hitachi Vantara, the data storage, infrastructure and hybrid cloud management subsidiary of Hitachi.

The findings are drawn from the Hitachi Vantara State of Data Infrastructure 2025 Report*, a global study examining how organisations are preparing their data infrastructure to support AI at scale. In Singapore, the study captured perspectives from senior business and technology leaders responsible for data infrastructure, cybersecurity, and AI strategy, providing insight into how local enterprises are navigating AI adoption, data complexity, and security risks in an increasingly digital and regulated environment.

The research indicates that Singapore firms are widely using AI, with nearly all (96%) local respondents reporting some level of AI use. Two-thirds say they have been successful using AI.

However, confidence drops when it comes to sustained returns. While adoption is widespread, many enterprises remain uncertain about their ability to consistently translate AI adoption into long-term business value, highlighting a growing disconnect between deployment and operational readiness. According to Hitachi Vantara, this gap suggests that while Singapore enterprises are advancing with AI, not all are equally prepared to support it at scale over the long term.

As AI workloads expand, data complexity is increasingly viewed as a strategic concern rather than a purely technical one. Many Singapore enterprises reported that managing sprawling data environments has become more difficult, with direct implications for governance, visibility and cyber resilience.  

Highlights for the Singapore research included:

- Two thirds say their organisation has already had success using AI, demonstrating strong early momentum

- Nearly a quarter (23%) rated their organisation as having strong, industry-leading readiness to achieve ROI from AI, pointing to the majority's uncertainty around sustained value creation

- Just over half (52%) said the complexity of their data makes it more difficult to detect a security breach, reinforcing the link between infrastructure sprawl and cyber risk

- Over six in 10 (64%) agreed that if leadership fully understood how fragile their data infrastructure is, it would keep them up at night, highlighting an important knowledge between the expert executive levels

These findings indicate that even among organisations using AI, complexity and security challenges can expose underlying weaknesses in data management rather than resolve them, Hitachi Vantara noted.

As AI becomes more embedded in business operations, many Singapore enterprises are placing greater emphasis on governance, security and operational discipline, rather than focusing solely on rapid AI expansion, Hitachi Vantara added.

This risk-aware approach reflects growing expectations around reliability and trust, particularly as AI systems begin to influence critical business decisions. However, it also raises the bar for data infrastructure, making weaknesses more visible — and more consequential — if left unaddressed.

“AI success is no longer about experimentation alone. It depends on whether data environments are resilient, governed and trusted,” said Joe Ong, VP and GM for ASEAN, Hitachi Vantara. 

Source: Hitachi Vantara State of Data Infrastructure 2025 Report landing page. What organisations globally say about whether their data foundation is ready for AI. 

“Singapore businesses are clearly ahead in adoption, but the next phase will be defined by how well they manage complexity, security and performance as AI scales.”

The research suggests that many Singapore enterprises recognise the need for stronger data foundations but still face challenges translating that awareness into coordinated, long-term action, Hitachi Vantara said. While AI usage is high and early success is common, rising complexity and security risks threaten to erode confidence and returns if not addressed systematically, the company concluded.

*The research surveyed over 1,200 C-level executives and senior IT leaders across 15 markets worldwide, spanning the Americas, Europe, and Asia and Oceania. The Asia and Oceania sample included 425 respondents, comprising 80 in Australia, 81 in mainland China, 55 in Hong Kong, 104 in India, 51 in Singapore, and 54 in Taiwan. Respondents represented a broad range of industries and organisational sizes, with results weighted by industry and role type to ensure a balanced and representative view of enterprise decision-making.