Is AI Bearing The Trust Weight?
With consumers becoming increasingly hesitant to share personal information, confidence in AI among consumers has dropped significantly.
Artificial intelligence is moving fast and upwards on the adoption curve, witnessing immense excitement from businesses and customers alike. However, amidst the buzz, it is essential for brands, and the marketers navigating them, to remember what matters the most – building meaningful connections with customers.
In fact, as per the fourth Consumer Experience Trends report by Qualtrics, 48% of consumers are comfortable with using an organisation’s AI, and consumers still prefer human interaction over digital. In Singapore, only 36% of consumers trust AI, citing data privacy as a significant concern. Drawing on 23,730 responses across 23 countries – including 798 from Singapore – the Qualtrics report provides critical insights for business and marketing leaders aimed at enhancing customer experiences, increasing market share, and driving revenue in 2025.
AI: Scepticism Over Confidence
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 scepticism.
With 52% of customers preferring to interact with human agents, 49% are worried about how their data is being used. A significant 64% have low trust in how organisations will use AI.
The Silent Treatment
Brands are finding it increasingly difficult to meet customer expectations with customers often staying silent about even their unsatisfactory experiences. In Singapore, 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,” said Isabelle Zdatny, Customer Loyalty Specialist at Qualtrics. “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.”
When customers don’t provide direct feedback, they are still talking about their experiences, only on different channels. At this juncture, brands must find news ways to listen.
Personalisation and Privacy Paradox
Customers are wary of sharing their personal information yet also actively want personalisation from brands they engage with. While 72% of consumers prefer personalised experiences, only 40% trust companies to use their personal information responsibly.
The data indicates that businesses must communicate better with their customers about the use of personal data and ensure adamant privacy and safety. When customers feel safe, they will be more willing to share their data in exchange for tailored experiences.
“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.
