Singapore businesses are rapidly adopting artificial intelligence (AI), but growing data complexity and security challenges could undermine long-term returns, according to new research from Hitachi Vantara.

The findings come from the Hitachi Vantara State of Data Infrastructure 2025 Report, a global study examining how organisations are preparing their data infrastructure to support AI at scale. The survey covered more than 1,200 C-level executives and senior IT leaders across 15 markets in the Americas, Europe, and Asia and Oceania.

Strong AI Adoption, Uneven Readiness for ROI

In Singapore, AI adoption is widespread, with 96 per cent of respondents reporting some level of AI use. Nearly two-thirds say their organisations have already seen success from AI initiatives, indicating strong early momentum.

However, confidence weakens when it comes to sustained returns on investment. Only 23 per cent of Singapore respondents rate their organisations as having industry-leading readiness to achieve long-term ROI from AI, highlighting a gap between deployment and operational preparedness.

The findings suggest that while Singapore enterprises are advancing quickly with AI, many are still building the foundations needed to support it at scale over time.

Data Complexity and Security Risks Rise

As AI workloads grow, data complexity is emerging as a strategic risk rather than a purely technical issue. More than half of Singapore respondents say the complexity of their data environments makes it harder to detect a security breach, linking infrastructure sprawl directly to cyber risk.

The study also found that 64 per cent of respondents believe that if senior leadership fully understood how fragile their data infrastructure is, it would be a major concern. This points to a visibility gap between technical teams and executive decision-makers.

Taken together, the results indicate that AI adoption can expose weaknesses in data governance and security if underlying infrastructure challenges are not addressed.

Risk-Aware Approach to AI Growth

Rather than pursuing rapid expansion alone, many Singapore firms appear to be taking a more risk-aware approach to AI adoption. Governance, security and operational resilience are becoming higher priorities as AI systems play a greater role in business decision-making.

“AI success is no longer about experimentation alone. It depends on whether data environments are resilient, governed and trusted,” said Joe Ong, Vice President and General Manager for ASEAN at Hitachi Vantara.

“Singapore businesses are clearly ahead in adoption, but the next phase will be defined by how well they manage complexity, security and performance as AI scales,” he added.