Singapore – Despite the widespread acceptance of AI-assisted interactions, a recent Adobe report revealed that only more than 1 in 10 brands in Singapore use generative AI to elevate the customer experience, despite almost half (42%) of consumers choosing these tools over human interactions.
In this report, Adobe observed that Singaporean brands are lagging behind their global peers, with only 12% of them utilising generative AI to advance customer experience initiatives. This shows a contrast with the global average of 17%.
Around 20% are also more than three times as likely as those in Singapore (6%) to have briefed senior leadership on the organisational implications.
Interestingly, a significant 16% of these brands in Singapore are also presently embarking on upskilling initiatives to collaborate with generative AI, exceeding the global percentage of 11%.
The report also noted that these Singaporean brands are dedicated to enhancing their generative AI capabilities, with half of them identifying it as their fundamental focus for customer experience.This places it as the second-highest priority on the strategic agenda, alongside the integration of the CX technology stack (52%).
The said commitment surpasses initiatives such as applying data insights to CX efforts (42%), and investing in new technologies such as influencing CX (33%).
Commenting on the report, Simon Dale, Vice President for Asia at Adobe, said, “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.”
“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,” continued Dale.
On top of this, Singaporean consumers have also become more data-conscious in the generative AI era.
In particular, consumers have expressed concerns about the use of generative AI by brands, particularly fearing the unauthorised use of their personal data (61%) and the excessive collection of data (64%). Global consumers, on the other hand, exhibit lower levels of concern, with only 56% expressing worry about unauthorised use and 55% about excessive data collection.
Both consumers and brands acknowledge that concerns about data privacy and security limit personalisation efforts. In particular, around 24% of brands in Singapore identify consumer reluctance to share data as a primary barrier; thus, they may underestimate the repercussions of data mishandling.
“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,” he concluded.
