Singapore – Singaporean consumers have grown wary of artificial intelligence (AI), with only 36% trusting AI amidst data privacy concerns, according to a new Qualtrics report.
With consumers becoming increasingly hesitant to share personal information, confidence in AI among Singaporean consumers has dropped by 11% in the past year. It marks a shift from consumers’ initial excitement in AI use to increasing skepticism.
Customers’s growing concerns surrounding AI use contribute to this waning trust. Many customers prefer interacting with human agents (52%) while some are worried about how their personal data will be used (49%). Meanwhile, many consumers have low trust in how organisations will use AI (64%).
“There is no excuse for getting the fundamentals of good customer experience wrong, but too often consumers are saying this is what’s happening with poor communication and service issues. High-performing industries continue to raise the bar on what good customer experience looks like, and with more than half of bad experiences ending in a spending cut businesses and governments can no longer afford to fall behind,” Isabelle Zdatny, customer loyalty specialist at Qualtrics, said.
Though fewer consumers report poor customer experiences, their trust, likelihood to recommend, and satisfaction have declined in the past year.
The report also highlights an increase in the silent treatment, where consumers avoid sharing feedback, both positive and negative. Singaporean consumers are 7% less likely to voice their complaints about negative experiences compared to 2021.
“Customers are giving brands the silent treatment, and if organisations don’t find a way to fix this issue we could see more disgruntled consumers in Singapore. Customers are expecting a better experience, but simultaneously they’re not willing to share the insights brands need to deliver one. Overcoming this gap requires brands to rethink how they engage with customers, and go beyond the traditional feedback survey,” Zdatny said.
Additionally, the report shows a paradox in personalisation and privacy. While 72% of consumers prefer personalised experiences, only 40% trust companies to use their personal information responsibly. It highlights businesses’ need to build trust and maintain transparency.
“Giving customers what they want is not a conversation about privacy or personalisation. It’s about trust. Brands need to identify what they need to do to win trust back without overstepping the mark and turning customers away instead. It’s dangerous to assume that existing customers will stay loyal without intentional effort to keep them. To deliver a great customer experience, following through on the most basic commitments and delivering what’s been promised is what’s most important to consumers,” Zdatny added.
“Following through on the most basic commitments carries the most weight with customers. New initiatives rolling out are outside customers’ comfort zones, so it is essential to have the basics in place and uphold them. Customers are more demanding than ever, and it’s dangerous to assume that existing customers will stay loyal without intentional effort to keep them,” Zdnatny concluded.
