Singapore – Retailers are feeling pressure as costs mount, customer expectations rise, and technology gets increasingly complex, according to a new report from Salesforce. At the same time, AI agents, a type of artificial intelligence (AI) that can autonomously take action across business systems, offer a path forward. In fact, three out of four retailers (69%) in Singapore believe AI agents will be vital for beating the competition within a year.
According to the report, rising customer acquisition costs are squeezing retailers’ margins as they also navigate inflation, competition, and consumers’ evolving behaviors and preferences.
Additionally, the increasing complexity of the shopper journey due to shifting behaviour patterns is adding another layer of pressure. While physical stores remain vital, their purchase share is declining in Singapore — from 43% in 2024 to a projected 38% by 2026.
Digital spending is fragmenting across a constellation of marketplaces, retailer websites, brand sites, and delivery apps, rather than consolidating into a single channel.
The report also noted that retailers are deepening their commitment to AI, with 85% of retailers in Singapore saying they’re increasing investment over the next year. As adoption continues, marketing emerges as retail’s top agent use case. Here, agents can dynamically segment audiences, tailor messaging, and trigger campaigns based on real-time customer behaviour—offloading repetitive tasks so marketers can focus on creativity, strategy, and driving impact across channels.
In addition, AI agents need access to data across retail systems to work effectively. With better, more unified data, agents can provide more personalised and real-time responses. However, many retailers’ systems are disconnected, creating challenges for employees and shoppers alike.
Around 75% of retailers in Singapore say inefficient processes and technology drain store associate productivity. Meanwhile, 61% of shoppers in Singapore have abandoned purchases due to friction in the ordering process. Fortunately, 82% of retailers in Singapore have unified commerce initiatives underway. By connecting cross-channel and cross-departmental operations on a single platform, unified commerce improves efficiency and shopper experience — and helps power AI.
Brian Kealey, area VP and country leader at Salesforce Singapore, said, “Retailers in Singapore grapple with high rental costs, persistent labour shortages, and increasing customer expectations. Agentforce offers retailers an opportunity to reach new levels of productivity by supporting time-intensive tasks such as responding to customer queries, modifying orders, issuing returns and managing inventory without human intervention.”
He added, “To fully leverage AI, Singaporean retailers must integrate it within a unified commerce platform, connecting front- and back-end operations for efficiency and personalised customer experiences.”
The retail transformation isn’t one-sided. Consumers are already exploring AI in their shopping journeys, with 36% of shoppers in Singapore — and 53% of Gen Z — using AI for product discovery. Gen Z shoppers in APAC are 4.7x more likely than baby boomers to say they frequently use AI this way.
For AI agents specifically, shoppers in Singapore show a strong willingness to use AI agents to optimise loyalty points, get faster answers from customer service, and more. Shoppers in Singapore rank customer service as their second top AI agent use case, aligning with retailers’ priorities.
