Singapore Leads Global Agentic AI Adoption at 44%, EY Study Shows

Singapore enterprises are investing in agentic AI (software that can independently complete multi-step tasks) at a rate significantly above the global average, according to EY's Reimagining Industry Futures Study 2026. The study surveyed 1,590 businesses across 25 countries, including 48 Singapore enterprises.

Singapore Outpaces Global AI Investment

44% of Singapore respondents are currently investing in agentic AI, compared to 34% globally. A further 25% of Singapore enterprises plan to invest within the next year, also exceeding the global figure of 32%.

The study also found that 72% of Singapore enterprises plan agentic AI deployment by 2028, despite a current deployment rate of only 14% to 15%, well below the global rate of 23%.

Sovereign cloud adoption is accelerating alongside AI investment. Currently, 19% of Singapore enterprises are investing in sovereign cloud (dedicated computing infrastructure that stays within national borders), compared to 17% globally. A further 57% plan to invest within three years, versus 53% globally.

Digital Sovereignty Reshaping Vendor Decisions

Security concerns and geopolitical pressures are changing how Singapore enterprises choose technology suppliers. 83% of Singapore respondents are subjecting their long-term technology roadmaps to greater scrutiny due to digital sovereignty concerns, compared to 74% globally.

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71% of Singapore enterprises are reassessing supplier relationships due to geopolitical conditions. Key drivers for sovereign cloud adoption include cybersecurity and data control (61%), compliance with national policies (53%), and reducing reliance on foreign vendors (44%). Each figure exceeds its global counterpart.

"Digital sovereignty is compelling enterprises to re-evaluate their existing cloud vendor relationships for compliance with national regulations and the need for greater control over their data," said Joongshik Wang, EY Asean Technology, Media, Entertainment and Telecommunications Leader.

Vendor Consolidation Accelerates

54% of Singapore enterprises plan to consolidate suppliers within 12 months, up sharply from 41% the prior year. The global rate rose more modestly, from 35% to 43% over the same period.

Security has become the top criterion for selecting technology and telecommunications suppliers. However, enterprises identified significant gaps in vendor performance. 79% of Singapore respondents cited insufficient case studies demonstrating value delivery. 73% want higher-quality after-sales support, compared to 53% globally, a 20-percentage-point gap.

Competitor actions are the top external driver of technology investment decisions, cited by 86% of Singapore respondents. ESG considerations ranked second at 83%, followed by policies and laws governing technology and data at 81%.

Government Policy Reinforces Enterprise Direction

Singapore's government released a formal agentic AI governance framework in January 2026, covering risk bounding, human accountability, technical controls, and user responsibility monitoring. The framework establishes compliance benchmarks that technology vendors must meet.

Singapore's Budget 2025 allocated SG$150 million (~US$111 million) to the Enterprise Compute Initiative, supporting businesses in adopting AI with integrated security measures.

At the regional level, global sovereign cloud spending is projected to reach US$80 billion by 2026, with China accounting for US$47 billion. Mature Asia-Pacific markets, including Singapore, are identified as the fastest-growing segment.

The EY study was conducted across 25 countries. Singapore findings are based on responses from 48 enterprises.