Despite almost half of consumers in Singapore (42%) favouring artificial intelligence (AI)-assisted brand interactions, Singapore brands are falling behind global peers in harnessing the latest AI innovations for better customer experience. Only 12% of brands are leveraging generative AI to enhance CX initiatives compared to 17% globally.
According to Adobe’s State of Digital Customer Experience report, almost half of consumers in Singapore (42%) would choose an AI-enabled tool or service over a human interaction, more than the global average of 40%. Many more want both options to be available, particularly when exploring new products and services.
Brands globally (20%) are also more than three times likely than brands in Singapore (6%) to have already briefed senior leadership on organisational implications.
Interestingly, 16% of brands in Singapore are currently establishing upskilling initiatives to work with generative AI, compared to just 11% globally.
However, brands in Singapore are committed to improving their generative AI capabilities in the next 12 months, with half saying it is their primary CX focus. That puts it second on the strategic agenda, with a similar proportion as integrating the CX technology stack (52%), and ahead of applying data insights into CX efforts (42%) as well as investing in new technologies that touch or impact the CX (33%).
“Consumers are swiftly embracing generative AI-led experiences. While brands in Singapore are lagging behind in terms of AI adoption, our findings indicate that this will soon evolve as Singapore as well as other Asia markets are well poised for an accelerated uptake amid continued realisation of the direct benefits that generative AI offers and its strong position as a technological hub,” said Simon Dale, vice president, Asia, Adobe.
Dale added that when it comes to business strategies, most brands in Singapore acknowledge that improving the customer experience is of top or significant priority. “This is driving brands to focus on evolving their digital experiences, underscored by a strategic emphasis on flexible and highly personalised interactions,” Dale added.
What do consumers in Singapore want?
More than two-thirds of consumers in Singapore (68%) want brands to offer the same level of personalisation online and in-person, and three in four want unified, seamless experiences in every interaction.
However, meeting this expectation remains a top challenge for brands. Most are yet to adopt the data-driven technology tools and capabilities needed to deliver personalisation at scale and keep pace with customer preferences.
Consumers and brands agree that data privacy and security concerns constrain personalisation.
Around 24% of brands in Singapore say consumer reluctance to share data is a top barrier, but they underestimate the impact of data missteps. Around 77% of consumers in Singapore will stop or consider not buying from brands that lack transparency over personal data use, as compared to just 60% globally. Yet, only 40% of brands believe it impacts retention.
Consumer attention on data practices extends to generative AI. Consumers in Singapore are worried that as brands use generative AI, their personal data will be used without consent (61%) and that too much data will be collected (64%). This is compared to just 56% and 55% of global consumers respectively.
Across Singapore, many brands are yet to respond to the need for stronger AI guardrails to meet consumer expectations and ensure trust is not compromised. Just 14% of brands in Singapore have ongoing or completed initiatives to create internal usage policies.
“Consumers have emphasised that their most impactful brand experiences are those that are relevant and personalised to their preferences. As brands continue to digitalise at full speed to meet expectations, it is crucial that they also strategically navigate data privacy and security concerns so as to not jeopardise their relationship with customers,” said Dale.
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