Singapore SMEs unconcerned about AI impact despite rising adoption

A new report from insurance provider QBE Singapore has found that Singapore SMEs are adopting artificial intelligence in the workplace, with nearly half (49%) of those surveyed expecting a positive impact on productivity. However, the report also highlights deficient levels of awareness and preparedness for cyber risks.

The survey of 605 SMEs found a positive view of AI, with key areas for improvement seen in automated responses (6%), routing manual work/tasks (6%) and finance/accounting/audit functions (4%).

Despite the rise in AI use, only 30% of SMEs expressed concerns about AI replacing jobs. This involves seeing AI as a tool to enhance, rather than replace, the human workforce.

Although the optimism around AI stays at a reasonably high level, there has been an alarming decline in cybersecurity awareness among SMEs. Only 47% of respondents reported they are “fully informed” regarding possible cyber risks, compared to 57% in 2023. This decline coincides with a decrease in reported cyber incidents affecting SMEs (25% in 2024 versus 38% in 2023).

According to QBE, the number of SMEs without cybersecurity processes or controls in place has increased from 9% in 2023 to 19% in 2024, highlighting a lack of preparedness for potential cyberattacks.

Despite fewer reported incidents, SMEs remain vulnerable. The report indicated the need for a multifaceted approach to cybersecurity, including software solutions (used by 59%), staff training (used by 46%) and dedicated staff to handle cybersecurity (used by 44%).