Singapore public sector eyes AI cost savings amid adoption barriers

Government and public sector organisations in Singapore see strong potential for artificial intelligence (AI) to generate cost savings and improve service delivery, yet implementation remains limited. According to a recent survey of nearly 500 senior government executives globally, including over 30 from Singapore, only 26% have deployed AI in their operations, mirroring global figures.

Adoption hurdles

Several barriers impede broader AI integration. In Singapore, 81% of respondents highlighted difficulties in justifying AI investment due to unclear returns and uncertain outcomes. Public caution over the use of personal data by AI systems is also a significant concern, cited by 71% of Singapore-based executives. Public organisations face internal barriers: 61% noted inadequate data infrastructure and the persistence of legacy systems, while 52% pointed to ongoing worries over data privacy and security.

"In Singapore, there is already a whole-of-government effort to upskill public officers and catalyse cross-agency collaboration. By harnessing data and AI, governments can deliver more accessible, personalised and secure services. To overcome public wariness, they can start by building transparency and accountability into how data is used. In addition, demonstrating measurable outcomes like faster services, optimised costs and better citizen experiences can show clear returns from AI," said Samir Bedi, Singapore Government and Public Sector Leader, EY.

Structural groundwork

Despite the obstacles, Singapore's public sector reports relative strengths in data management. Three-quarters of surveyed executives said their organisations are effective in managing data ethics frameworks, internal data interoperability, and data quality and reliability. Over half have introduced data security training to build workforce readiness. However, these capabilities are not yet fully scaled or consistent across government operations, suggesting a continued need for deeper structural reforms.

AI infrastructure

Many public bodies are prioritising foundational digital infrastructure in anticipation of greater AI use. Over the next three years, 74% of Singapore organisations surveyed plan to strengthen their data and digital capabilities. More than half intend to enhance data privacy practices and improve data sharing between departments. These investments are seen as steps towards enabling more sophisticated analytics and AI-driven initiatives in future years.

"To bridge the gap between ambition and reality in AI adoption, governments must first invest in a strong digital and data foundation. Unlike the private sector, governments hold vast amounts of legally protected data. Those that have established clear data governance frameworks and have embedded data capabilities across the organisation rather than limit them to isolated teams are seeing faster, broader progress. Unified data platforms that are AI-ready accelerate the build out and the adoption of AI to deliver better citizen services in a more cost-effective way," said Manik Bhandari, EY Asean Data and Artificial Intelligence Leader.

Talent and collaboration

Reflecting a wider recognition of AI's economic importance, EY has launched an Agentic AI Centre of Excellence in Singapore. The centre aims to assist government agencies and businesses in developing AI capacity, enhancing productivity, and contributing to the local AI workforce. According to EY, such collaborative efforts are part of Singapore's broader attempt to position itself as a trusted regional hub for AI talent and solutions.

Looking ahead

Many in the public sector see a pressing need to modernise as governments face resource constraints, demographic changes and rising citizen expectations. The survey indicated that 84% of Singapore respondents plan to invest in digitising and automating services over the next three years. Executives are increasingly focused on closing the gap between AI vision and delivery, with new initiatives in data privacy, infrastructure and employee preparedness.

"The stakes are high. Citizens now expect government services to be as seamless as those from the private sector. Meeting these expectations is important to maintain public trust and confidence," said Bedi.