Singapore, October 21 2026 — Artificial intelligence (AI) is emerging as a key driver of productivity, but chief executives are facing challenges in translating efficiency gains into measurable business growth, according to the latest EY-Parthenon CEO Outlook Survey. The survey of 1,200 CEOs across 21 countries, including 40 from Singapore, found that 45% of Singapore respondents identified AI technologies as the largest contributor to productivity gains over the past 12 months, compared with 50% globally. Business process redesign ranked second, cited by 33% of Singapore respondents and 46% globally.
Rather than treating these gains solely as short-term efficiency improvements, 50% of Singapore CEOs surveyed said they were reinvesting additional capacity into innovation and transformation initiatives to support future growth. The global figure stood at 48%. However, legacy systems, organisational complexity and regulatory requirements continue to limit the extent to which AI-driven productivity improvements translate into stronger financial results. One-fifth of Singapore respondents, compared with 23% globally, said such gains were often absorbed before reaching the bottom line.
Measuring Returns on AI Investments
Measuring the financial impact of AI remains a challenge for many organisations. While 57% of Singapore respondents and 56% globally reported having at least some reliable visibility into AI costs and returns, only 9% of Singapore CEOs said they had clear, real-time visibility into return on investment (ROI), against 16% globally.
Another 30% of Singapore respondents, compared with 24% globally, said they could track some AI costs but had limited ability to assess overall ROI. Sriram Changali, EY-Parthenon Asean and Singapore Strategy and Execution Leader, said organisations needed to look beyond productivity improvements to realise AI’s wider business potential.
“It is clear that AI is creating productivity gains; yet productivity is but a small part of the value that it can bring. Too often, CEOs and management teams deploy AI within individual functions rather than incorporate into the end-to-end workflow, from production through to consumption, to create value for customers,” he said. Changali added that CEOs and boards needed to identify AI-driven business models and opportunities for growth, supported by changes to operating models, talent and capital allocation.
Skills Shortages Emerge as a Growth Constraint
Workforce transformation is another priority as AI adoption accelerates. An overwhelming majority of Singapore CEOs surveyed (98%) believe AI will have a greater impact on roles, skills and ways of working than on workforce size over the next three years. Globally, 80% of respondents shared this view.
However, 60% of Singapore respondents said their organisations were not developing AI skills quickly enough to keep pace with innovation, compared with 47% globally. Meanwhile, 92% of Singapore CEOs expect skills shortages to become a greater barrier to growth than access to capital within three years, against 72% globally. Reskilling was cited as a key driver of productivity by 50% of Singapore respondents, compared with 33% globally.
Yet only 22% of Singapore CEOs said overall productivity gains were being reinvested in workforce development, against 15% globally. Changali said AI literacy needed to extend across organisations, including senior executives and boards, to help leaders assess risks and returns and distinguish experimentation from enterprise-wide value creation. Without this capability, he warned, organisations risk scaling AI activity without fundamentally improving how they compete, operate and grow.
CEOs Prioritise Strengthening Existing Businesses
The survey also points to a more selective approach to growth, with CEOs balancing innovation, partnerships, acquisitions and divestments to strengthen capabilities and allocate capital more effectively. Some 72% of Singapore CEOs said their growth strategies were focused more on strengthening existing businesses than on rapid market expansion. The global figure was 69%.
A majority of Singapore respondents (85%) plan to pursue some form of transaction over the next 12 months, compared with 96% globally. Acquisitions remain an option for 58% of Singapore CEOs, while 55% plan to pursue strategic alliances and 50% joint ventures. Divestments are also on the agenda, with 46% of Singapore respondents planning to divest assets over the next 12 months, against 51% globally.
AI is increasingly being applied to transaction activities. Some 60% of Singapore CEOs said their organisations were piloting AI in selected transaction activities, while 32% reported using it across multiple or most activities. Globally, the respective figures were 46% and 45%. Respondents identified improving decision-making and accelerating deal execution as the leading opportunity for AI in transactions, cited by 50% of Singapore CEOs and 35% globally. Another 48% of Singapore respondents saw opportunities in using AI to identify value earlier, compared with 45% globally.
Geophin George, EY-Parthenon Asean Transactions and Corporate Finance Leader, said AI could support multiple stages of the deal lifecycle, including due diligence, valuation, identifying synergies and risks, and post-deal integration. “The advantage will go to companies that use AI not just to make better decisions, but to execute with greater speed and precision and create more value from every transaction,” he said.
