Deloitte has released the 2026 edition of the State of AI in the Enterprise report, which analyzes the adoption of artificial intelligence in companies and its impact on leadership, operations, and governance.

From pilot projects to production

The research highlights the difficulty of scaling AI projects beyond the pilot phase. In Singapore, 32% of surveyed leaders report that at least 40% of their pilot projects have been moved into production, compared to a global average of 25%. The report emphasizes the risk of "pilot fatigue," i.e., running numerous experiments without a clear direction.

Productivity gains and changes

73% of Singapore's leaders report improvements in efficiency and productivity thanks to AI, exceeding the global average of 66%. However, only one-third are redesigning key processes around AI, highlighting a gap between short-term gains and broader structural changes.

Governance and agentic AI

Interest in agentic AI is growing, with 75% of companies planning to implement such tools in various operational areas within two years. Despite this, governance frameworks are still under development.

Physical AI in operations

The report also highlights the rise of physical AI, with growing interest in automation in industrial and operational settings. Digital twins, collaborative robotics, and intelligent monitoring are cited as application areas.

Data sovereignty

Issues related to data control and local infrastructure are becoming increasingly important in AI planning. Most Singapore companies consider data residency and regional computing capacity relevant to their strategy, expressing concern about reliance on foreign-owned platforms.

For those evaluating on-premise deployments, there are trade-offs to consider. AI-RADAR offers analytical frameworks on /llm-onpremise to evaluate these aspects.