HSBC Private Bank: Singapore entrepreneurs put AI into practice as two in three adjust business operations

Two in three (65 per cent) have already adjusted their business operations to prepare for the impact of AI, compared with 60 per cent globally.

Six in ten (61 per cent) Singapore entrepreneurs plan to invest between 11 per cent and 30 per cent of their annual turnover in AI technologies over the next 12 months, in line with the global average. Nearly all (97 per cent) have either already made, or plan to make, changes to their business operations in response to advances in AI, compared with 95 per cent globally.

The report surveyed more than 3,000 high net worth (HNW) and ultra-high net worth (UHNW) entrepreneurs and founders worldwide. Globally, four in five entrepreneurs (79 per cent) plan to increase AI investment in their main business over the next year, with those surveyed expecting to allocate an average of 21 per cent of their annual revenue to AI spend, equivalent to a combined planned AI spend of US$367 billion.

Singapore entrepreneurs see AI supporting margins, productivity and growth

Entrepreneurs in Singapore see AI delivering tangible business benefits. Almost half (49 per cent) believe it can help improve profit margins, compared with 39 per cent globally, while 44 per cent see it improving their own productivity, versus 38 per cent globally. Some 43 per cent expect AI to increase employee productivity, in line with the global average.

More than half (56 per cent) of Singapore entrepreneurs expect the integration of AI into their businesses to increase employee headcount over the next two years, compared with 44 per cent globally. Just 14 per cent expect headcount to decrease, versus 23 per cent globally.

At the same time, entrepreneurs are clear-eyed about the challenges of adoption. Almost half (49 per cent) are concerned that employees may resist AI because of fears over job losses, compared with 34 per cent globally. The cost of implementing AI is a concern for 45 per cent of Singapore entrepreneurs, compared with 36 per cent globally, while 36 per cent cite data privacy and security risks, versus 34 per cent globally.

Tommy Leung, Head of Private Bank, South Asia, HSBC, said: “Singapore entrepreneurs are moving AI from discussion into execution. What stands out is the breadth of the opportunity they see, from improving margins and productivity to supporting future growth, while remaining clear-eyed about the challenges around employee adoption, implementation costs and data security. For the entrepreneurs we work with at HSBC, these are business decisions with longer-term implications for the wealth they create. Success will depend on combining investment in technology with disciplined execution and sound judgement.”

Other Singapore findings include:

• Trust in AI remains nuanced: Half (50 per cent) of Singapore entrepreneurs report “a great deal” of personal trust in AI, compared with 47 per cent globally, while 47 per cent say the same about using AI to support business activities, versus 46 per cent globally. Trust is lower when it comes to using AI for investment management, at 31 per cent in Singapore compared with 38 per cent globally.
• AI is contributing to business confidence: 91 per cent of Singapore entrepreneurs remain positive about their current business prospects, with 35 per cent citing advancements in AI as one of the reasons for their positive outlook.

Media Enquiries

Carina Koh carina.koh@hsbc.com.sg
Urvashi Raizada urvashi.raizada@hsbc.com.sg