Singapore’s largest enterprises are moving swiftly to adopt artificial intelligence ( AI ) across their financial systems, but high costs and a shortage of skilled talent are posing major roadblocks, according to a recent report.

Despite 54% of Singaporean respondents scaling or fully implementing AI or machine learning ( ML ) in their financial operations, four in five cite the high costs of implementation and maintenance as a serious barrier, and 70% note a lack of in-house expertise as a key hurdle, finds The Harmony Gap: Finding the Financial Upside in Uncertainty report, which is published by FIS and Oxford Economics and surveyed senior executives across the US, UK and Singapore.

Among the executives surveyed in the report, 100 were from Singapore, representing businesses and financial institutions with revenue of at least US$250 million or assets under management of at least US$100 million.

“These [cost, talent] constraints are making it difficult for businesses to fully leverage AI’s potential, slowing down transformation efforts to create greater efficiencies in their financial systems,” says Andrew Murray, FIS’ head of international banking and payments. “Enterprise-wide AI adoption is no longer a choice but a necessity for businesses looking to stay competitive in Singapore and reduce the costs of disharmony.”

As well, Singapore businesses, the report points out, lose an average of US$95.7 million annually due to cyber threats, fraud and inefficiencies. Cybersecurity was flagged as the top challenge ( 98% ), with 27% of leaders encountering threats daily. Fraud also remains prevalent, with 76% citing it as a major concern.

In response, 40% of firms, the report details, have deployed AI/ML-powered fraud detection tools, and 58% are investing in generative AI for enhanced risk management. The top benefit of AI adoption cited by business leaders is improved fraud detection, experienced by 84% of respondents.

Singapore’s government is taking steps to support this AI transition. Singapore Prime Minister Lawrence Wong, in his February budget statement, announced up to S$150 million ( US$115 million ) in funding, under the Enterprise Compute Initiative, aimed at helping businesses adopt AI tools and infrastructure.

As Singapore aims to establish itself as a regional AI hub, businesses must navigate the dual challenge of cost and capability. Closing the gap between innovation and implementation, the report suggests, will be critical for unlocking financial resilience and future growth.