Singaporean consumers are early adopters of artificial intelligence, drawn to its efficiency and speed in everyday interactions. However, a new report by customer communications firm Sinch reveals that a strong demand for trust, relevance, and human connection tempers this enthusiasm.
The State of Customer Communications report, released on September 9, surveyed over 600 consumers across Singapore, India, and Australia. It highlights a critical balancing act facing businesses in Singapore: leveraging AI without undermining consumer expectations for safety and personal interaction.
The research highlights a nuanced adoption curve. While 45 per cent of Singaporean respondents said they would use AI-powered customer support if backed by credible brand information, only four per cent would choose AI or chatbots as their first choice for resolving issues—underscoring ongoing concerns around privacy and accuracy.
This selective comfort with AI extends to sectors such as healthcare and finance. Although 57 per cent of respondents are fine with using AI for tasks such as booking appointments, 68 per cent express doubts about the accuracy of AI-generated medical responses.
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Similarly, half of all Singaporeans would still prefer to talk to a human when dealing with fraud concerns in financial services.
The report also outlines a growing tension between consumers’ desire for tailored experiences and their unease over data usage. While many Singaporeans appreciate AI-driven recommendations, 44 per cent say they only welcome them if they are genuinely helpful. Misguided or irrelevant suggestions could lead to customer churn rather than loyalty.
This phenomenon, dubbed the “personalisation paradox,” has strategic implications for brands. Getting personalisation right can deepen customer engagement. Get it wrong, and it risks eroding the trust companies are trying to build.
“Singaporean consumers are proven early adopters, embracing the efficiency and convenience that AI brings to their brand experiences,” said Wendy Johnstone, EVP APAC at Sinch.
“Our research makes it clear that trust and human connection remain essential. The businesses that will win are those that blend digital efficiency with the human touch, giving customers control and choice at every step.”
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