Artificial intelligence (AI) will be the top technology investment area for 67% of Singapore businesses in 2025, Capgemini Research Institute said on Monday.
The institute said in its latest global report that 75% of organizations in Singapore plan to launch a proof of concept (PoC) or fully deploy AI agents.
Meanwhile, more than 60% of organizations in Singapore plan to implement PoC for AI/Generative AI in Cybersecurity in 2025.
Almost a quarter of organizations in Singapore plan to deploy part-scale AI-powered robots in 2025.
The report also showed that 70% of business leaders at large companies in Singapore plan to increase their investments in sustainability.
60% plan to increase investment in climate technology.
Meanwhile, 57% of business leaders at large companies in Singapore plan to increase investment in their supply chains.
More than half (58%) of organizations are in the process of exploring a new generation supply chain in Singapore that is agile, green and AI-assisted.
Overall, 57% of Singapore business leaders are optimistic about their organizations’ prospects, and 58% plan to increase investment in their organizations in 2025.
Singapore ranks highest in the world for the percentage of large business leaders who plan to increase investment in customer experience (85 per cent) and manufacturing/operations (72 per cent).
Globally, U.S. organizations are expected to outpace their peers in technology investments in 2025, according to the report.
Additionally, U.S. business leaders are more likely to feel they need to invest more to become competitive (84 percent) compared to European business leaders (64 percent).
When it comes to investing in technology, nearly three in four executives list AI/generative AI in their top three technology priorities for 2025. This trend is even stronger in the United States.
62% of executives (up 10 percentage points from 2024) believe investments in sustainability are increasingly seen as a driver of business value and an asset for compliance and efficiency, and are increasingly influenced by geopolitics. ) plans to improve sustainability. Budgets increased by an average of 10.5%.
Priority areas include hydrogen, renewable energy, batteries, nuclear power and climate technologies such as carbon capture (72% of executives plan to spend more).
Batteries are seen as the biggest investment in climate change technology in 2025, with more than half of business leaders ranking them in the top three, particularly manufacturing and automotive companies, followed by solar energy. There is.
Besides climate technology, other key areas where investments in sustainability are increasing are sustainable research and development (R&D) and product development, biodiversity protection and restoration, and water conservation/management.
Much of the trust of business leaders continues to focus on customer experience, followed by engineering, research and development, and innovation. Currently, nearly eight in 10 and nearly three-quarters of executives plan to increase investment in these areas, respectively.
However, the fastest accelerating investment is focused on supply chain transformation, with 63% saying they will increase spending in 2025, up from less than half in 2024, and an average It increased by 9.4%.
A new generation of supply chains will integrate AI and the Internet of Things (IoT) to increase efficiency, reduce waste and support companies’ sustainability goals, as well as improve decision-making, according to a report. and reduce overall costs.
Overall, the report found that business leaders are more confident about the year ahead than they were 12 months ago. 62% are optimistic about their organization’s prospects in 2025, an increase of 6 points compared to the same time last year and a 20 point increase from 2023.
However, executives are more confident in their organizations than in the global market as a whole, with 37% optimistic about the outlook for the global business environment over the next 12 to 18 months, up slightly from last year. That’s all.
In the current uncertain market environment, 56% expect to prioritize cost reduction over revenue growth in 2025.
However, management recognizes that this change requires investment. Half say their organization plans to increase overall investment in 2025, just under a quarter expect investment levels to be lower compared to 2024, and the remainder expect no change.
Ayman Ezzat, CEO of Capgemini, said: “As we look to 2025, business leaders are navigating uncertainty with an attitude of confidence and resilience. Our research shows that these two qualities are “It shows that we’re trying to infiltrate organizations through technology investments.”
According to him, technology plays a key role in increasing competitiveness and productivity, while reducing costs and most importantly increasing efficiency.
“With a focus on innovation, supply chain and sustainability, increasingly leveraged for their potential to create value, leaders can thrive in uncertain environments and build resilient and adaptive organizations.” Set yourself up to.
“Importantly, this will help shape a more innovative, sustainable and inclusive global economy,” he added.
Globally, seven out of ten executives are concerned about the impact of rising tariffs and bilateral trade disputes on their organization’s competitiveness.
Almost two-thirds are also concerned about the impact of a potential global trade war on their organization’s operations and market access.
In this regard, Japanese and Chinese executives are most concerned about rising tariffs and bilateral trade disputes, and least concerned about the possibility of a global trade war.
To mitigate these risks and build resilience, most organizations around the world are diversifying their sourcing and support of friends.
Nearly three in four executives are already reducing supply chain risks by investing in other emerging countries to reduce dependence on China, up from less than half last year.
At the same time, almost two-thirds of them admit that friend shoring will become an important part of their organization’s sourcing and production strategy in 2025 (up from 45 percent last year).
Capgemini Research conducted a survey of 2,500 business leaders from 2,500 organizations in 17 countries across North America, Europe, and Asia Pacific.
The study includes nine industries and sectors: consumer products. Banks and Capital Markets. Insurance; Retail; Life Sciences. Telecommunications, Media and High Tech. Manufacture. and energy and utilities.
The survey was conducted from October 23 to November 20, 2024, with half of the sample collected before the US election and the other half after the election.
In the overall sample, 70% of respondents work for organizations with annual revenues greater than $1 billion, and 30% are medium-sized organizations with annual revenues between $100 million and $1 billion.
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