The annual DBS Pulse Check Survey which engages more than 110 SMEs, also finds that less than 40% are ready for mandatory climate disclosures coming into place for listed firms this year.

More than 70% of small and medium enterprises (SMEs) from Singapore intend to invest in generative artificial intelligence (Gen AI) solutions in order to stay competitive this year, according to DBS’s SME Pulse Check Survey conducted earlier this year. 

The annual survey engaged more than 110 SMEs across various industries. 

This contrasts with how much SMEs adopted AI in 2023 according to the Infocomm Media Development Authority (IMDA)’s Singapore Digital Economy Report released last October. The report found that SMEs had an AI uptake of 4.2%, as compared to non-SMEs at 44% in 2023. 

In DBS’s survey, more than 70% of SMEs also said that they planned to upskill employees and strengthen their teams’ readiness to adopt such advanced technologies, however, only slightly more than 30% said they have already started experimenting with Gen AI tools for functions such as marketing and communications. 

Other key findings in the survey include SMEs' bullishness on overseas expansion, with about 70% intending to allocate capital towards regionalisation. More than 60% of companies had a go-to-market strategy targeting Asean and other high-growth regions, the report finds. 

The survey also explored SME’s sustainability preparedness ahead of mandatory climate disclosures for listed companies taking effect this year — less than 40% of SMEs have started or are well into their preparations, the majority remain in the early stages of their sustainability journeys. 

DBS finds that top barriers to greening operations include limited resources, navigating complex regulations and managing transition costs, underscoring the importance of continued capacity building and access to financial support.

“SMEs in Singapore are taking bold steps to future-proof their businesses, whether by investing in Gen AI to boost productivity or expanding into high-growth markets to capture new opportunities. Their adaptability and commitment to transformation are essential for staying competitive in an increasingly uncertain landscape,” says Koh Kar Siong, group head of corporate and SME banking at DBS.