Singapore’s digital economy grew to S$144.1 billion in 2025, and AI adoption among enterprises accelerated sharply. The Infocomm Media Development Authority (IMDA) reported that the share of firms using AI rose from 14.7 % in 2024 to 23.5 % in 2025.

The rise was felt across company sizes. Among small and medium enterprises, AI use climbed from 14.5 % to 23.4 %, while large local firms increased from 62.5 % to 70.4 %, according to IMDA.

At the same time, more workers are putting AI to work. IMDA said 86 % of employees used AI at work in 2026, up from 78 % in 2025.

Among those users, 73 % reported higher productivity, 69 % said the quality of their work improved, and 68 % felt their problem‑solving abilities were stronger. About six in ten also saved up to an hour each day for other tasks.

IMDA found that 68 % of workers see a need to upskill in AI, but only 37 % took AI‑related training in the past year.

Around 35 % said they were not nominated for training, another 35 % lacked time, and about 25 % were unsure which course to choose. To close the gap, IMDA said it is expanding the TechSkills Accelerator under the National AI Impact Programme, aiming to upskill 40,000 tech professionals over the next three years and train 100,000 non‑tech workers in domain‑specific AI skills by 2029.