AI could be key to restoring consumer trust in Singapore

Research from Salesforce highlights a decline in consumer trust among Singaporean customers, underscoring the significance of AI technologies in shaping customer experiences.

According to the "State of the AI Connected Customer" report, consumer trust in companies is at a record low across Singapore, with three-quarters of respondents expressing less trust than in the previous year. This sentiment is reflected in concerns over data handling, with 61% of consumers feeling that companies are reckless with customer data. Customer service quality is also critical to consumer loyalty, as 57% of consumers indicated that poor service would deter repeat purchases.

Consumer expectations are also shifting, with 75% of respondents desiring consistent interactions across company departments and 71% preferring fewer touchpoints to complete tasks. Convenience and service quality have become key drivers of long-term brand loyalty among Singaporean consumers.

The report suggests that young consumers, particularly millennials and Gen Z, show greater willingness to engage with AI agents. While 53% of millennials and 47% of Gen Z are open to using AI technology for a better customer experience, only 36% of baby boomers share this sentiment. Millennials also place higher expectations on AI, with 37% indicating that AI should improve customer experience standards, compared to 27% of Gen Zers and boomers.

Despite some hesitation, the report identifies opportunities for companies to leverage AI to win back trust. "With the upcoming holiday and festive season, retailers are under immense pressure to keep up with declining consumer trust and rising expectations in Singapore," said Sujith Abraham, Senior Vice President and General Manager, Salesforce ASEAN. "But there's also a huge opportunity - Singaporean consumers are more open than ever to AI. Autonomous AI agents can help businesses rebuild trust and scale to meet increasing demands during this season, by elevating and personalising customer experiences at scale in a trusted manner."

Transparency in AI operations appears to drive consumer confidence, with over half of the survey respondents remaining neutral about AI's impact on their personal and professional lives. However, there is a mix of suspicion and curiosity from consumers regarding AI's future, with 31% expressing suspicion and 52% showcasing curiosity.

Business transparency in AI interactions is essential, as 76% want to know if they are communicating with an AI agent and 60% are more inclined to use AI if the process and logic behind it are clearly explained. About 44% of consumers would accept automated assistance from AI agents to avoid repeating themselves, and 39% would prefer faster service through AI, showing a significant interest in the technology, especially among Gen Z and millennials.

Companies like Saks are beginning to see the value of AI integration. Mike Hite, Chief Technology Officer at Saks Global, commented on their experience: "Since introducing Agentforce at Saks, we are beginning to see the real potential for its autonomous AI agents to augment our teams' ability to provide personalized and efficient customer support. Agentforce will streamline routine tasks, such as order tracking, enabling our service teams to prioritize more meaningful customer interactions and focus on delivering a high-touch, tailored customer experience. We're excited to continue enhancing our luxury shopping experience and exploring new ways Agentforce can continue to further elevate our service."

The survey underpinning these findings included responses from 1,003 Singaporean consumers and was conducted by YouGov between late July and mid-August 2024. The results offer insights into how consumer trust can be influenced by strategic deployment of AI technologies and transparent operations.