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    Singapore Brands Face Challenges in Embracing AI for Enhanced Customer Experience

    A recent report by Adobe sheds light on the challenges faced by Singaporean brands in adopting artificial intelligence (AI) for improved customer experience (CX), despite a significant preference for AI-assisted interactions among consumers. While 42% of Singaporean consumers favor AI-enhanced brand interactions, the report reveals that only 12% of brands in Singapore leverage generative AI to enhance CX initiatives, in contrast to the global average of 17%.

    The State of Digital Customer Experience report from Adobe indicates that almost half of consumers in Singapore (42%) would opt for an AI-enabled tool or service over a human interaction, surpassing the global average of 40%. The desire for both options, especially when exploring new products and services, is prevalent among Singaporean consumers.

    Globally, 20% of brands are over three times more likely than their Singaporean counterparts (6%) to have briefed senior leadership on the organizational implications of AI integration. Notably, 16% of brands in Singapore are currently establishing upskilling initiatives to work with generative AI, compared to the global figure of 11%.

    Despite the current gap, Singaporean brands express a commitment to enhancing their generative AI capabilities in the next 12 months, with half stating it is their primary CX focus. This places it second on the strategic agenda, on par with integrating the CX technology stack (52%), and ahead of applying data insights to CX efforts (42%) as well as investing in new technologies impacting the CX (33%).

    Simon Dale, Vice President, Asia, Adobe, commented on the findings, stating, “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, along with other Asia markets, is well poised for an accelerated uptake amid continued realization of the direct benefits that generative AI offers and its strong position as a technological hub.”

    Dale emphasized that improving customer experience is a top priority for most Singaporean brands in terms of business strategies. The focus is on evolving digital experiences, underscored by a strategic emphasis on flexible and highly personalized interactions.

    Consumer Expectations and Challenges for Brands

    The report highlights that 68% of consumers in Singapore expect brands to provide the same level of personalization online and in-person, with three in four desiring unified, seamless experiences in every interaction. However, meeting these expectations remains a significant challenge for brands, as many are yet to adopt the necessary data-driven technology tools and capabilities for personalized, scalable interactions.

    Both consumers and brands acknowledge that data privacy and security concerns act as constraints on personalization efforts. Approximately 24% of Singaporean brands identify consumer reluctance to share data as a top barrier, underestimating the impact of data missteps. Notably, 77% of Singaporean consumers would consider not buying from brands lacking transparency over personal data use, compared to the global average of 60%. However, only 40% of brands believe it impacts retention.

    Consumer attention to data practices extends to generative AI, with concerns about personal data being used without consent (61%) and excessive data collection (64%). These figures surpass global consumer concerns at 56% and 55%, respectively.

    Despite these concerns, many Singaporean brands are yet to respond adequately to the need for robust AI guardrails to meet consumer expectations and ensure trust is not compromised. Only 14% of brands in Singapore have ongoing or completed initiatives to establish internal usage policies.

    Simon Dale concluded, “Consumers have emphasized that their most impactful brand experiences are those that are relevant and personalized to their preferences. As brands continue to digitalize at full speed to meet expectations, it is crucial that they also strategically navigate data privacy and security concerns so as not to jeopardize their relationship with customers.”

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