This article was written by:
Gerry Chng, Partner, Head of Cyber, Advisory, KPMG in Singapore
Lyon Poh, Partner, Head of Corporate Transformation and Artificial Intelligence Leader, KPMG in Singapore
Jonathan Ho, Partner, Head of Risk, Advisory and Head of Infrastructure, Government & Healthcare, KPMG in Singapore
Boards face a more challenging operating environment than ever. Tariff uncertainties are growing, the global economy faces stronger headwinds, and technology is advancing at a record pace, disrupting businesses around the world.
To thrive in this challenging macroeconomic climate, boards must guide their organisations to navigate the “intelligent economy” effectively. This new era, defined by the integration of advanced technologies like artificial intelligence (AI), demands not only innovation but also robust governance and sustainable growth.
At the heart of this transformation are five interdependent forces that boards must align on to ensure their organisations’ success. These forces—trust; data; AI; sustainability; and the global economic outlook—are not standalone considerations but interconnected pillars that shape the intelligent economy.
The intelligent economy is more than just the adoption of AI. It is built on the convergence of AI with emerging technologies like quantum computing, biotechnology and robotics. These technologies enable businesses to reinvent their models and processes, but they also introduce complexities and uncertainties.
In this environment, trust becomes the currency of transformation. Boards must ensure that robust governance models are in place to embed transparency and accountability across their organisations. Flexible yet resilient frameworks can help mitigate technology-related risks while fostering innovation. Building trust with the workforce and empowering them with new mindsets and skills are critical to realise the value of transformation.
While innovation is encouraged to take place at the edge, technology governance is important to manage risks of duplicated investments, inconsistencies and interruptions. By adopting global, principles-based frameworks, boards can establish clear accountability structures that are widely recognised. However, overly prescriptive policies should be avoided, as they may struggle to keep pace with the rapid evolution of technology.
If governance is the foundation, data is the fuel that powers the intelligent economy where AI plays a pivotal role. Boards must prioritise the use of high-quality data to generate accurate insights and optimise outcomes.
To achieve this, organisations need well-designed frameworks to ensure data integrity and reliability. Boards must also invest in the right talent and infrastructure to protect sensitive data while enabling innovation.
Having a data strategy is critical to enable business innovation through emerging technology. For instance, generative AI (Gen AI) presents opportunities but also risks of data leakage and making wrong decisions without proper safeguards. Boards must understand how organisational data is managed and used to balance innovation with risk management.
While data fuels the intelligent economy, AI reinvents the engine of future business. Boards must lead their organisations in strategically integrating AI across all aspects of the business to fundamentally change the way of working.
A four-pillar framework—unlocking value, empowering people, safeguarding trust and optimising technology (and data) —can guide this transformation. Boards must mandate a shift from using AI solely for automation to leveraging it for innovation and long-term value creation.
People are central to this strategy. Continuous workforce upskilling and clear training roadmaps are essential to equip employees with the skills needed to harness AI effectively. A well-prepared workforce not only drives innovation but also safeguards trust by managing risks and ensuring compliance.
To accelerate AI adoption, boards should foster collaboration through AI practitioners, public-private partnerships, and academic alliances. These networks can help scale AI tools and infrastructure, driving integration across borders and sectors.
When adopted and integrated effectively, AI positions organisations for long-term success in the intelligent economy.
Sustainability is no longer just a regulatory requirement—it is a strategic opportunity. Leading organisations are using AI-enabled sustainability intelligence to gain a competitive edge and create long-term value.
Boards must recognise the intersection of sustainability and AI. The technology can drive measurable sustainability outcomes and ensure that strategies remain agile in the face of regulatory and macroeconomic changes.
Embedding a “Green by Design” approach into organisational DNA is key. This involves aligning with national priorities, such as Forward Singapore and the Singapore Green Plan 2030, to integrate sustainability into digital strategies. Boards must also cultivate talent with the competencies needed to lead in a high-tech, sustainable future.
KPMG in Singapore’s strategic guide, Advancing Digital Sustainable Talent for the Future, highlights the critical role of board buy-in in accelerating this shift.
The intelligent economy does not exist in isolation—it is shaped by the broader macroeconomic landscape. Supply chain volatility, inflation, and geopolitical uncertainties create a complex environment that boards must navigate.
Balancing these challenges with the need to scale intelligent enterprise transformation is no small task. As KPMG’s Global Navigator for July 2025 shows, the global economy faces significant headwinds, including US tariffs, elevated geopolitical risks, and fears over financial stability.
Boards must guide their organisations to build resilience against these uncertainties. This includes using AI and related technologies to forecast and model risk events, deploying the right talent, and adapting risk frameworks. Partnerships can also play a crucial role in shaping long-term capabilities.
The five forces—trust; data; AI; sustainability; and the global economic outlook—are deeply interconnected. Boards that understand and align on these forces will be better equipped to lead their organisations through the complexities of the intelligent economy.
By fostering trust, leveraging data, driving AI adoption, embracing sustainability, and navigating economic uncertainties, boards can prepare their organisations for success in this transformative era.
The intelligent economy is here, and the time for decisive board leadership is now.
Partner, Head of Risk, Advisory and Head of Infrastructure, Government & Healthcare
KPMG in Singapore
