AI adoption among businesses in Singapore rises; digital economy accounts for larger share of GDP

SINGAPORE - Adoption of artificial intelligence among all enterprises in Singapore has risen, with over one in five businesses here using the technology in 2025, even as the country’s digital economy grew to over $144 billion and accounted for a larger share of the nation’s gross domestic product.

Correspondingly, tech employment grew 3.8 per cent year-on-year to 222,200 in 2025, with the fastest-growing roles in AI, data and cybersecurity, according to the latest figures from the Singapore Digital Economy Report.

Released by the Infocomm Media Development Authority on Oct 5, the report showed that adoption of AI among all enterprises rose from 14.7 per cent in 2024 to 23.5 per cent in 2025.

Specifically, AI adoption among small- and medium-sized enterprises rose from 14.5 per cent to 23.4 per cent while adoption among larger businesses jumped from 62.5 per cent to 70.4 per cent over the same period.

This is even as Singapore’s digital economy grew from $136.5 billion in 2024 to $144.1 billion in 2025, with its contribution to the nation’s GDP rising from 18.8 per cent to 19.3 per cent year-on-year.

IMDA said that the steady growth of the digital economy “reflects that digital technologies continue to shape how all enterprises across various industries operate, and how workers do their jobs”.

The report calculates the digital economy based on two components.

The first is the value-add or economic contribution of the information and communications (I&C) sector, which comprises digital services typically associated with the tech industry like telecommunications, computing and software. The second is the value-add that non-I&C industries have derived from embracing digital technologies and solutions.