AI adoption among businesses in Singapore rises; digital economy accounts for larger share of GDP
Latest figures from the Singapore Digital Economy Report released by IMDA showed that adoption of AI among enterprises rose from 14.7% in 2024 to 23.5% in 2025.
Singapore's adoption of artificial intelligence among businesses has surged, with more than one-fifth of companies utilizing the technology in 2025, according to the latest data from the Singapore Digital Economy Report. This increase comes despite the country's digital economy expanding to over $144 billion and constituting a larger share of the nation's GDP.
The report, released by the Infocomm Media Development Authority on October 5, revealed that AI adoption among all enterprises rose from 14.7% in 2024 to 23.5% in 2025. AI usage specifically grew among small- and medium-sized enterprises from 14.5% to 23.4%, while it expanded among larger businesses from 62.5% to 70.4% over the same period.
Meanwhile, Singapore's digital economy expanded from $136.5 billion in 2024 to $144.1 billion in 2025, accounting for 19.3% of the country's GDP, up from 18.8% a year earlier. The Infocomm Media Development Authority stated that this growth underscores how digital technologies are continually reshaping the way businesses function in various sectors and how workers execute their roles.
The digital economy is measured by two components: the value-add from the information and communications sector, which includes digital services typically linked to the tech industry like telecommunications, computing, and software, and the value-add that non-I&C industries have gained from embracing digital technologies and solutions.
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