Enterprises across the country are accelerating AI deployments, yet 79% will not move forward without proven business outcomes and risk management plans
Story Highlights
Dell Technologies’ latest Modern Enterprise Readiness Study 2026 reveals a widening “AI Execution Gap” across Singapore. Enterprises are no longer debating AI’s value, but are looking to deploy it securely and sustainably at scale.Data sovereignty concerns, fragmented infrastructure, storage bottlenecks, and ungoverned Shadow AI are stalling progress, shifting the focus from AI software alone to modernising the enterprise foundation.Organisations are moving away from transactional vendors toward co-creative strategic partners who share accountability for long-term, measurable business outcomes.
SINGAPORE, Sept. 9, 2026 /PRNewswire/ — Enterprises across Singapore have moved beyond debating whether AI delivers value and are now navigating how to deploy it at scale, securely and sustainably. According to the Dell Technologies Modern Enterprise Readiness Study 2026, a survey based on 2,950 business and IT decision-makers across 35 countries, including 100 across Singapore, enterprises that close the gap between AI ambition and operational readiness are best positioned to lead the country’s next phase of growth.
Why it matters:
As AI moves from experimentation to business-critical deployment, success depends on more than AI software. It requires a modern foundation of secure data, AI-ready infrastructure, controlled energy footprints, and trusted partnerships. For organisations navigating macroeconomic pressure and rising governance demands, modernising that foundation is now the deciding factor in whether AI scales into predictable, measurable business value.
Ambition is Outpacing Execution
Nearly six in ten (58%) Singaporean organisations say they cannot keep pace with the speed of change, and 60% lack an actionable roadmap spanning AI, data, and security. Macroeconomic pressure is sharpening the stakes: 93% say they are being more selective and outcome-driven in their technology investments, and 79% will not move forward with new AI initiatives without proven business outcomes and a defined risk management plan.
“Singapore businesses aren’t questioning AI’s potential anymore, they’re drawing a hard line on ROI and risk,” said Andy Sim, Vice President and Managing Director, Singapore, Dell Technologies. “Nearly eight in ten local enterprises won’t greenlight new AI projects without proven business outcomes and a clear risk plan. Ambition is outpacing readiness, and shiny AI software can’t overcome legacy infrastructure, data security gaps, or rising energy constraints. Until companies resolve these behind-the-scenes bottlenecks, most AI projects will stay stuck in pilot mode.”
Data Sovereignty and Security Are Defining the Boundaries of AI Strategy
As AI becomes business-critical, data governance has moved from a compliance function to a strategic priority. 80% of respondents say their data and IP are too valuable to place in third-party GenAI tools, and an equal proportion cite regulatory compliance as a core concern. 79% have already slowed or paused AI adoption due to security and compliance issues, with most requiring partners to demonstrate clear risk management plans before any new initiative moves forward.
Infrastructure Is the Bottleneck Most Organisations Didn’t Expect
Legacy environments were not built for AI at production scale. 82% of organisations in Singapore identify storage performance and data access, rather than compute capacity, as their primary technical barrier. 76% say their data centres are not yet ready to support demanding AI workloads. In response, 88% plan to consolidate onto fewer, more capable platforms, and 94% now mandate integrated cyber-recovery capabilities as a baseline requirement.
Power has also emerged as a defining constraint on growth, placing sustainability at the heart of infrastructure planning. 89% cite energy limits as a core purchasing factor, and 86% say they will only scale AI where energy footprints can be kept under control.
Shadow AI Is Already Inside the Enterprise
The gap between centrally approved AI strategy and day-to-day workforce behaviour is widening fast. 92% of respondents report employees using personal devices to access AI tools for work, and 73% have found unapproved AI tools on company devices. The trend even extends to spending, with 77% saying teams are expensing AI tools on departmental credit cards without IT oversight.
At the same time, 87% say legacy PCs are actively limiting their ability to adopt AI-enabled applications, making endpoint modernisation an urgent priority alongside infrastructure investment.
That momentum is set to reshape the workplace, with 93% of Singaporean organisations believing AI PCs will play a central role in their future workplace strategy.
The Partnership Model Is Being Rebuilt Around Shared Accountability
Enterprise expectations of technology partners are shifting fundamentally. 83% of APJC organisations report replacing transactional vendors with strategic partners who co-create multi-year roadmaps and share responsibility for business outcomes. 90% believe their existing partners should be doing more, and 95% expect security to be embedded into every proposal rather than treated as a separate consideration.
About the Modern Enterprise Readiness Study 2026
Dell Technologies commissioned Vanson Bourne to survey 2,950 business and IT decision-makers from organisations with more than 100 employees across 35 countries in June 2026. 100 respondents were from Singapore.
Key Findings at a Glance
Theme
Key Findings
The AI Execution Gap
79% won’t advance AI initiatives without proven
business outcomes and a defined risk management
plan58% cannot keep pace with the speed of change60% lack an actionable roadmap across AI, data,
and security93% are more selective and outcome-driven due to
macroeconomic pressure
Data Sovereignty &
Security
80% say their data and IP are too valuable for third-
party GenAI tools86% say regulatory compliance is shaping how and
where they use data for AI29% require AI data/models on infrastructure they
own; a further 45% mandate sovereign or local cloud79% have slowed or paused AI adoption over
security and compliance concerns
Infrastructure & Data
Centre Readiness
82% cite storage performance and data access —
not compute — as the primary bottleneck79% say hybrid/multi-cloud environments feel
fragmented76% admit data centres aren’t ready for AI at
production scale88% plan to consolidate onto fewer, more powerful
platforms94% mandate integrated cyber-recovery capabilities
Power &
Sustainability
89% cite power limits as a core purchasing factor86% will only scale AI if energy footprints stay
controlled
Shadow AI & the
Modern Workplace
92% report employees using personal devices to
access AI tools for work73% report unapproved AI tools on company devices77% say teams expense AI tools on departmental
credit cards without IT oversight87% say legacy PCs limit AI-enabled application
adoption93% believe AI PCs will be central to their future
workplace strategy
The Shift to Strategic
Partnerships
83% are replacing transactional vendors with co-
creative strategic partners90% feel existing partners should do more87% are shifting spend toward partners with scale
and ecosystem reach95% expect security embedded in every proposal
About Dell Technologies
Dell Technologies (NYSE: DELL) helps organisations and individuals build their digital future and transform how they work, live and play. The company provides customers with the industry’s broadest and most innovative technology and services portfolio for the AI era.
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SOURCE Dell Technologies