Singapore’s workers are embracing artificial intelligence (AI) faster than the businesses that employ them. According to IMDA’s Singapore Digital Economy Report 2026, 85.7% of workers now use AI at work, most daily or weekly. Yet only 23.4% of small and medium-sized enterprises (SMEs) have adopted AI.

The gap widens when we look at how deeply AI is used. The Ministry of Manpower’s (MOM) first firm-level survey on AI adoption found that only 3.8% of firms have integrated AI into their core processes. Surveys of SMEs tell a similar story: many use AI in some form, but few have built it into how they operate.

In other words, AI has arrived in Singapore’s workplaces, but it has not yet changed how most businesses operate. The problem is not access. Most SMEs are layering AI onto workflows that were never designed for it. The answer is not another tool, but fixing the workflow first.

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The problem: individual AI use is not adding up to business gains

This gap shows up in everyday work. In most SMEs, employees lead AI use, often through features already included in company software and with some training or guidance. Today’s tools can extract invoice data, find information across documents and route requests for approval. But when used as standalone assistants, rather than connected to the systems and information a process depends on, the benefit stays with the individual.

A finance executive can use AI to read an invoice in seconds, but if it is not linked to the accounting system, the figures still have to be keyed in. A customer service officer may ask AI to find a contract, but the answer is only as good as the records it can reach. A quotation may be drafted in minutes, yet still wait days for sign-off. Each task gets quicker, but the process does not. AI does not eliminate inefficiency. It makes inefficiency move faster.

For business owners, this means limited visibility into what information is shared, which AI outputs teams rely on and whether responses are consistent. With lean teams and tight budgets, they may see AI spending without a clear return, making them hesitant to invest further.

The root cause: the workflow, not the AI model

In our work with businesses across Singapore, we see the same pattern. The constraint is rarely the AI model itself. It is the operational layer underneath: paper and PDF documents in varied formats, data held in disconnected systems, and approval steps that exist mainly in people’s heads.

Many SMEs tell us that cost and expertise are not the only hurdles. Most know AI matters, but lack a clear strategy: which process to fix first and what success should look like. Without one, AI remains a collection of individual shortcuts rather than a business capability.

The solution: fix the workflow first, then apply AI

The SMEs that move from using AI to benefiting from it do not need a complex governance structure or a multi-year transformation programme. They tend to follow four practical steps.

  • Choose one workflow that matters. Rather than applying AI everywhere at once, start with a process that is frequent, frustrating and measurable, such as invoice processing, customer requests or document approvals.
  • Get the information right. Turn paper, PDFs and scattered documents into structured, reliable data, and connect it to the systems the workflow depends on. AI is only as good as the information it works with.
  • Redesign the process end to end, with people in charge. Set clear rules for what AI can access, what it can do independently and where a person must review the outcome. When an output affects a contract, payment or sensitive customer relationship, a person must remain responsible for the final decision. Human oversight is not evidence of failure. It is often the difference between a fragile experiment and a reliable workflow.
  • Measure value, not activity. Licences purchased, pilots launched and employees trained show momentum, not impact. Track the business outcome the workflow is meant to improve, such as time saved, errors reduced or faster turnaround, and use it to decide whether to expand, redesign or stop.

Together, these steps create a foundation for repeatable value: organised documents, connected workflows and continuous improvement. SMEs can start with one everyday process and their existing systems, then keep the workflow reliable, secure and useful as needs evolve.

A growing manufacturer, for example, could digitise supplier invoices, expense claims and approvals to reduce manual entry and give employees better visibility of each request. A logistics business might replace paper reports, procurement forms and manually uploaded cargo photos with simple digital workflows that staff can update across locations. These changes do not require automating everything at once. They begin with a familiar bottleneck, then use automation or AI to reduce errors, shorten turnaround times and free employees for higher-value work.

The starting question is therefore not “Which AI tool should we try?” but “Which recurring problem takes up too much time, and what would a better outcome look like?” For SMEs, meaningful gains are more likely to come from fixing one manageable process, proving the value and then expanding only where it makes sense.

The next divide

Access is no longer the problem for Singapore’s SMEs. AI is increasingly built into the software they already use, and government support continues to lower the cost of getting started.

The next divide will be between SMEs whose employees use AI and those whose businesses run better because of it. Closing that gap does not start with another tool. It starts with fixing one workflow, getting the information behind it right and managing the process well enough to sustain the gains. When documents, data and approvals move through a connected workflow, SMEs can prove value, improve over time and scale with confidence.

The article titled “Singapore’s workers have adopted AI. Most of its SMEs have not yet.” was authored by Mr Wee Tee Hsien, CEO of FUJIFILM Business Innovation Singapore

About the author

Wee Tee Hsien brings over 30 years of experience driving digital transformation, IT services, outsourcing, and managed services across the Asia-Pacific region. As the Chief Executive Officer of FUJIFILM Business Innovation Singapore, he leads the company’s strategic direction, accelerating growth in digital solutions while strengthening its leadership in print and document management services.

Prior to his current role, Tee Hsien was Vice President of Digital Solutions at Iron Mountain Asia, where he spearheaded digital business expansion across the region. As General Manager for Singapore and Indonesia, he transformed the business model and enhanced profitability.

He also held leadership roles at Fuji Xerox Asia Pacific, leading the Strategic Global Accounts division, driving customer acquisition and expanding Managed Document Services across multiple markets. Earlier in his career, as Strategic Engagement Director at Hewlett-Packard South-East Asia, he led business development initiatives and secured major IT outsourcing deals.

Tee Hsien’s expertise spans digital innovation, business transformation, and go-to-market strategy. He has a strong track record of building high-performance teams, driving operational excellence, and delivering sustained business growth.