Seven of 10 SMEs to invest in Gen AI to stay competitive

Small businesses are willing to allocate capital in the latest technologies to stay in the running.

The majority of small and medium enterprises have said that they are planning to invest in generative AI (Gen AI) to remain competitive amidst macroeconomic uncertainty and market volatility.

According to DBS’ latest Business Pulse Check Survey conducted early this year, 73% of the respondents said they are willing to inject capital into Gen-AI power solutions. Around 72% also said they are planning to upskill their employees and strengthen team readiness to adopt such innovations.

Meanwhile, 32% said they had already started using Gen AI tools for marketing and communications.

“SMEs in Singapore are taking bold steps to future-proof their businesses, whether by investing in Generative AI to boost productivity or expanding into high-growth markets to capture new opportunities,” said Koh Kar Siong, group head of corporate and SME banking, DBS.

Helping companies boost their adoption are government grants, access to affordable digital solutions, and practical advice on the most appropriate tools for specific business needs.

Companies surveyed were also bullish on overseas expansion, with 70% intending to allocate capital towards regionalisation. More than 60% had a go-to-market strategy targeting ASEAN and other high-growth regions.

The respondents said that market insights, guidance on trade laws and compliance, and access to reliable suppliers and distributors’ network are vital in their international expansion.

In terms of sustainability preparedness, 36% of SMEs have started or are well into their preparations, with the majority remaining in the early stages. The top barriers to greening operations included limited resources, navigating complex regulations, and managing transition costs.

The annual DBS Business Pulse Check Survey surveyed more than 110 SMEs across various industries.