SINGAPORE: Singaporean brands are falling behind their global counterparts in harnessing the power of Artificial Intelligence (AI) despite a rising preference among consumers for AI-driven interactions, according to a recent study by Adobe.

Adobe’s State of Digital Customer Experience Asia-Pacific report disclosed that nearly 50 per cent of consumers in Singapore favour AI-assisted interactions, exceeding the global average of 40 per cent, particularly for exploring new products and services.

However, the study highlights a significant disparity in AI adoption by Singaporean brands, with only 12 per cent leveraging generative AI to enhance consumer experiences, a figure lower than the global average of 17 per cent.

Despite this lag, Singapore outperforms its global peers in implementing upskilling initiatives for staff engaged with generative AI technologies.

On the strategic agenda of Singaporean brands, improving generative AI capabilities has emerged as the second-highest priority for the next year.

Half the brands identify this as their primary focus for enhancing the consumer experience, demonstrating a clear commitment to catching up with global AI integration standards.

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Simon Dale, Vice President at Adobe for Asia, expressed optimism about Singapore’s potential, saying:

“While brands in Singapore are lagging behind in terms of AI adoption, our findings indicate that this will soon evolve as Singapore, as well as other Asia markets, are 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.”

Despite the positive shift towards AI, concerns persist among consumers.

The study indicates that 61 per cent are apprehensive about the non-consensual use of their personal data, while 64 per cent of respondents worry about excessive data collection.

Dale stressed the need for businesses entering the digital realm to “strategically navigate data privacy and security concerns” to safeguard customer data and avoid compromising trust.

While Singapore embraces consumer preference for AI, the study showcases the need for local businesses to bridge the AI adoption gap, ensuring a harmonious integration that addresses the evolving concerns of data privacy and security in the digital era.