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Malaysia News

Singapore’s SMEs Harness AI to Compete with Larger Rivals: LinkedIn

SINGAPORE, 05 December 2025 – Despite global economic uncertainty, entrepreneurship is accelerating, and small and medium enterprises (SMEs) in Singapore are entering 2026 with resilience and agility. Artificial intelligence (AI) is emerging as their competitive edge, helping them punch above their weight against larger rivals, according to LinkedIn’s new Work Change Report.

The research highlights three key growth engines powering SMEs: AI and technology driving speed and scale, brand credibility to build trust and visibility, and networks that convert attention into opportunity. Yet adoption and literacy gaps remain. Sustaining momentum will depend on how quickly SMEs close the technology divide while continuing to strengthen consumer trust and build robust networks.

Technology and AI Level the Playing Field

AI is proving a powerful amplifier for SMEs and an equaliser for growth. It enables automation, smarter marketing, and data-driven decision-making, capabilities once reserved for large enterprises. Yet adoption among Singapore’s SMEs remains uneven despite widespread digital skills.

Only 26% of professionals use AI for advanced tasks such as strategy or data analysis, and fewer than half apply it to everyday work. AI literacy, defined as the ability to leverage AI tools for business purposes, remains one of the biggest opportunities for SMEs. Skills per employee in companies with 11–50 staff grew 67% year-over-year, compared with 99% for large companies with 1,001+ employees.

While nearly half (49%) of SME employees say they are learning AI with employer support, many (50%) remain unsure which skills to prioritise next. Their appetite for hands-on learning is clear: they want real-life projects and assignments (35%), opportunities to apply AI in daily work (35%), and virtual training and tutorials (34%). This demand signals a major opportunity for SME leaders to invest in training that makes AI immediately useful.

Brand Building Tops SME Priorities

Technology and skills alone will not guarantee success. As AI-generated content floods the internet, authenticity becomes the ultimate differentiator. SME marketers recognise this: while 80% say AI helps them create content faster, 73% believe human voices matter more than ever.

Many are doubling down on community-driven content through creators, experts, and employee voices to build trust and stand out in a crowded digital landscape. This focus on authenticity is even stronger among SMEs (76.6%) than larger companies (60%), showing how smaller businesses are using human voices as their competitive edge.

Networking Unlocks Opportunities

Human relationships remain essential for SMEs. Networks fuel growth in tangible ways, helping generate leads, inform hiring decisions, and provide trusted guidance when it matters most.

SMEs are acting on this insight, growing their networks strategically and seeing real results. Professionals in companies with 50 employees or fewer are expanding their networks 11% year-over-year, compared with 9% at large enterprises. This momentum shows that even as AI reshapes work, human relationships continue to set businesses apart.

“SMEs in Singapore are in growth mode and AI can be their ultimate force multiplier in 2026,” said Elsie Ng, Director, LinkedIn Talent Solutions, Singapore and Malaysia. “Authenticity and trust matter more than ever, and networks are the new currency for growth. At LinkedIn, we are equipping SMEs with AI-assisted drafting and tailored actions that save time, so they can focus on building networks and fostering relationships that drive growth while also developing the skills they need to turn technology into real advantage.”

To help SMEs accelerate growth and build resilient brands, LinkedIn offers solutions from Company Pages and content amplification to LinkedIn Events, as well as free curated LinkedIn Learning courses such as Leveraging AI for Small and Medium Business Growth, Nano Tips for Defining Your Personal Brand, and How to Network Smarter. The latest LinkedIn Work Change Report provides actionable insights tailored for Singapore SMEs.

Author

  • Bernard is a social activist dedicated to championing community empowerment, equality, and social justice. With a strong voice on issues affecting grassroots communities, he brings insightful perspectives shaped by on-the-ground advocacy and public engagement. As a columnist for The Ledger Asia, Bernard writes thought-provoking pieces that challenge norms, highlight untold stories, and inspire conversations aimed at building a more inclusive and equitable society.