SINGAPORE [TAC] – Singapore’s rapid push to become an AI-powered economy is hitting a critical roadblock: a widening disconnect between boardroom confidence and practical skills development, alongside widespread confusion over what ‘AI literacy’ actually means for the workforce.
According to new research from workforce training provider General Assembly (GA), Singaporean businesses are struggling to translate their rising confidence in artificial intelligence into executable strategies.
While organizations across the city-state are increasingly focused on developing an AI-literate workforce, the findings reveal that critical skills gaps and uneven leadership readiness remain the dominant concerns for employers seeking to leverage the technology.
The primary issue is a lack of consensus on the definition of “AI literacy.” Expectations vary wildly between human resources, technical teams, and hiring managers, creating significant confusion for recruiters and job candidates alike.
Key workforce trends emerge
The GA’s latest global AI leadership survey found that most organizations worldwide struggle to provide the intensive, continuous leadership development required to fully exploit AI’s potential.
Across the US and UK, where GA surveyed over 650 executives, confidence in AI is rising —74 percent of leaders now feel assured in making AI-related vendor decisions, a notable jump from the previous year.
In Southeast Asia, many organizations have accelerated AI experiments in recent years — particularly in sectors such as financial services, logistics and retail, but leadership upskilling remains uneven.
Globally, upskilling remains patchy with fewer than half (47 percent) reporting their companies provide tailored AI programs for leadership teams.
For Singapore, the rapid acceleration toward an AI-powered economy is hitting a severe structural bottleneck rooted in skills deficit and execution complacency.
A critical practical experience deficit is driving an intense, high-cost scramble for a small pool of professionals with proven, hands-on enterprise AI deployment knowledge. In addition, the decline in entry-level roles — as firms substitute junior staff with AI tools — risks a dangerous long-term erosion of the talent pipeline, eliminating the traditional “ground floor” for acquiring foundational skills and industry knowledge transfer. This market pressure is forcing executives to confront the dual challenge of hiring experienced AI talent while struggling to cultivate future expertise internally.
This talent squeeze is exacerbated by a fundamental strategic failure within many organizations. Firms are focused on superficial adoption, treating AI as a technical checklist item by aiming for “training completion” rather than deeply integrating it into broader business strategy and workflows, suggesting a critical gap in leadership-driven change.
Furthermore, the workforce faces a core competency challenge with the Gen Z Factor: hiring managers are concerned that the natural fluency and reliance on AI tools among younger talent could impede the development of independent problem-solving and critical thinking skills essential for complex future roles.
Sima Saadat, GA’s Singapore country manager, emphasized the urgency of executive clarity.
“AI is fundamentally changing how organizations operate—and leadership readiness is now the key differentiator,” Saadat said. “Our research makes it clear that after the technical groundwork, Singapore’s next leap depends on executive-level clarity, upskilling strategies for both new and existing talent, and a common language around AI literacy that addresses each sector’s unique needs.”
Daniele Grassi, GA’s chief executive officer, noted that return on investments (ROI) on AI often starts at the top. “If you’re not seeing ROI from AI investments, look at the top—ensure your leaders have both the technical understanding and change management skills to make it work.”
For Singapore to secure its place at the forefront of the AI revolution, organizations must move beyond technical training and foster a culture of continuous learning, championed by senior leaders. Success hinges on how decision-makers define and implement strategies, bridge the local practical skills gap, and champion responsible, adaptive AI adoption across all functions — not just engineering.
