Singapore consumers’ confidence in AI drops 11% over the past 12 months due to poor experiences

SINGAPORE: Singapore consumers’ confidence in AI use by institutions is on a decline.

A recent Qualtrics report showed an 11% drop in comfort levels with AI over the past year, whether they’re used to place orders or provide medical advice.

The report surveyed consumers’ trust in AI across various sectors and revealed that six in 10 Singaporeans now have low confidence in organisations to use AI responsibly.

According to the Singapore Business Review, the report also revealed growing concerns among consumers about AI use in customer service, with half preferring to connect with human agents, four in 10 worried about data misuse, and a similar number dissatisfied with the quality of interactions.

Isabelle Zdatny, a Customer Loyalty Specialist at Qualtrics, observed that companies are more excited about using AI than consumers and noted that there’s still much work needed to persuade everyone of its benefits.

She explained that AI works best in customer service when it focuses on solving specific issues that matter to people.

Although reports of poor customer experiences in Singapore have decreased over the past year, consumer trust has dropped by 4%, likelihood to recommend by 5%, and satisfaction with brands by 4%.

According to Qualtrics, the leading causes of poor experiences in Singapore include communication issues (43%), service delivery failures (42%), pricing concerns (39%), and unsatisfactory employee interactions (37%).

Mobile providers, hospitals, automotive companies, and parcel delivery services received the most complaints from consumers about poor experiences, while airlines, streaming services, and department stores saw fewer complaints.

While some consumers choose to report negative experiences, others prefer to remain silent.

Qualtrics found that Singaporean consumers are seven percentage points less likely to give feedback on poor experiences, with most opting to share these issues only with family or friends.

Ms Zdatny noted that customers expect better experiences but are often unwilling to share the feedback brands need to make changes.

She suggested that brands rethink their engagement strategies and move beyond traditional surveys. /TISG

Read also: Singapore firms prefer using RAG and SLMs over chatbots, LLMs, and digital assistants compared to global peers

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