Singapore companies yet to adopt AI integrated new workforce support council

Most businesses in Singapore have yet to adopt artificial intelligence, according to a new government report, prompting authorities to launch a new tripartite council. It aims at helping employers and workers manage AI-driven workplace transformation.

A report from the Ministry of Manpower found that 71.5% of firms in Singapore have not adopted AI technologies. Among the 28.5% of companies already using AI, only a small proportion have meaningfully integrated the technology into their core business processes.

The findings highlight the uneven pace of AI adoption across Singapore’s economy, even as businesses face growing pressure to improve productivity and digital capability. The government said many employers are still in the early stages of understanding how AI can support operations, workforce planning and long-term growth.

According to the report, only 3.8% of AI-adopting firms have fully integrated the technology into core workflows. However, businesses already using AI reported noticeable operational benefits, with 70.7% recording productivity improvements. Other reported gains included stronger decision-making at 13.3% and increased innovation at 11.9%.

The report also suggested that fears of widespread job losses linked to AI have yet to materialise. Only 6.2% of firms said they had reduced headcount following AI adoption.

“There is no indication of widespread job displacement,” the report read. “Instead, firms are redesigning roles (18.9%) and creating new AI-related jobs (13.9%), indicating that AI is primarily transforming tasks rather than replacing roles.”

The findings come as the government announced the formation of a new Tripartite Jobs Council to support businesses and employees through AI-related workforce changes. The council was initiated by the National Trades Union Congress and will be supported by the Ministry of Manpower and the Singapore National Employers Federation.

Tan See Leng said the initiative reflects a shared commitment to ensuring Singaporeans benefit from AI transformation. “By harnessing the combined reach and capabilities of our unions, employers, and the Government, we will help every worker maximise their potential, and every business can thrive by bringing out the best in their people,” Tan See Leng, Manpower Minister said in a statement.

Under the initiative, authorities will coordinate workforce transformation programmes, industry training and transition support for workers in roles most affected by AI adoption. The council will also focus on raising public awareness around AI and encouraging wider participation in government-supported training schemes.

To further support employers, the government has launched the Enterprise Workforce Transformation Package, which includes a SkillsFuture Workforce Development Grant worth up to S$150,000 per company to support job redesign, workforce reskilling and AI capability building.

The Ministry of Manpower said the grant is designed to help employers better understand how AI can improve operational processes while supporting workforce adaptation. The Singapore National Employers Federation has also been appointed as an anchor programme partner and will provide business advisers to guide companies through AI implementation and job redesign efforts.

In addition, Singaporeans enrolling in SkillsFuture AI courses will receive free access to premium AI tools for up to six months to strengthen practical digital skills. A new self-assessment tool will also be introduced to help workers evaluate their AI readiness and identify suitable training pathways.

The National Trades Union Congress separately announced expanded access to AI tools and courses through its Union Training Assistance Programme, aimed at helping workers build future-ready skills and improve adaptability in a rapidly evolving labour market.