Governance, workforce gaps hinder companies’ AI adoption despite rising investments: KPMG

[SINGAPORE] More than seven in 10 CEOs rank artificial intelligence as a top investment priority, yet many companies are struggling to scale adoption due to gaps in governance, data readiness and workforce capability, according to KPMG’s 2025 Global CEO Outlook survey.

The findings highlight a widening gap between ambition and sustained enterprise impact, as businesses move from early-stage experimentation to large-scale AI deployment.

To address these gaps, KPMG in Singapore has launched the Trusted Artificial Intelligence Centre of Excellence (AI CoE) to help organisations adopt and scale AI responsibly, supported by the Economic Development Board (EDB).

The centre was launched on Monday (May 25) by Minister of State for Digital Development and Information Jasmin Lau, alongside EDB managing director Jermaine Loy and managing partner of KPMG in Singapore Lee Sze Yeng. 

Positioned as a dedicated capability hub, the centre aims to help organisations embed AI as a trusted, enterprise-ready asset, while reinforcing Singapore’s standing as a global hub for trusted AI innovation and deployment by bringing together businesses, academia and the public sector. 

Lee said the centre would help businesses identify capability gaps and develop AI systems that meet international standards. 

“We are partnering with businesses to rigorously assess where they stand, close the gaps that matter, and build AI that is trusted not just locally but in the markets most critical to their growth,” she said.

Speaking at the launch, Lau said trust is the “core enabler” to an AI-powered economy. 

“Without trust, adoption will stall, not because the technology is not ready, but because our people are not ready.”

She added that Singapore aims to position itself and its companies as regional benchmarks for trusted AI, amid growing demand for credible and independent AI assurance as companies deploy AI systems across borders.

At the launch event, KPMG in Singapore also introduced its Trusted AI Assurance framework, an assessment approach targeted at helping businesses evaluate and scale AI deployments with greater confidence.

Developed in response to growing concerns over trust and accountability in enterprises’ AI adoption, the framework aims to help companies move from isolated AI pilots to enterprise-wide deployment by strengthening governance, workforce capability and infrastructure readiness.

Initial focus sectors for the AI CoE include financial services, infrastructure and logistics, manufacturing, government, healthcare and real estate, as well as functional areas such as finance, governance, risk and compliance, customer service and operations.

The event also featured a panel discussion titled “Honest Conversations: AI Transformation and the Singapore Opportunity”, where industry leaders highlighted the importance of leadership readiness and AI literacy in enabling successful AI adoption.

Johnson Poh, assistant chief executive of the enterprise transformation and innovation group at IMDA, said leadership teams must understand how AI reshapes workflows and introduces new risks to successfully embed the technology across organisations. 

Chen Ze Ling, managing director and group head of corporate and SME banking at DBS, said the size of a business matters less than its level of AI readiness and literacy.

“To build confidence in AI tools, we have to build AI literacy across the organisation.”

He added that businesses should first focus on defining the problem they are trying to solve before deciding whether to proceed with AI investments.