Singapore consumers trust AI, but privacy concerns still linger

Consumer openness to artificial intelligence remains high in Singapore, but local businesses deploying AI-powered customer service are struggling to meet expectations according to a new global report from Qualtrics.

The Consumer Experience Trends report draws on the perspectives of over 1,500 respondents in Singapore, and more than 20,000 globally, revealing significant gaps between Singapore consumers' optimism about AI and their trust in its organisational use for customer service.

Confidence in AI, but a trust gap

Singapore leads globally in positive expectations for AI, with 68% of consumers believing the technology will have a beneficial effect on society, higher than in any other market surveyed. However, only 40% trust organisations to use AI responsibly, despite a slight rise from 36% the previous year. This highlights a persistent trust deficit as local businesses expand their use of AI in customer interactions.

Over half of Singaporean consumers (55%) express concern about the impact of AI on human connections in customer service, a sentiment consistent with global findings. 58% are specifically worried about the misuse of their personal data to automate interactions-higher than the global average of 53%-and 55% fear losing the ability to connect with a human agent. Concerns about the quality of AI-powered interactions are also notable, with 46% highlighting this issue compared to 41% globally.

Consumers in Singapore demonstrate unmatched openness to AI, but trust and security concerns are eroding even their willingness to accept fully automated customer services. Companies need to use AI to equip human agents with better insights and faster solutions, turning AI into a multiplier for human connection, not a replacement for it,

said Irene Ng, Customer Experience Strategist, SEA at Qualtrics.

Customer service preferences

Despite advances in AI adoption, 54% of Singapore consumers still prefer human channels over digital options, with 19% choosing in-person support and 18% favouring live chat with a person. In contrast, only 10% would opt to interact with an AI chatbot for customer service.

Survey fatigue and hidden feedback

The report also finds that direct feedback to businesses remains infrequent: after a poor customer experience, only 39% of Singapore respondents report providing feedback directly, while this figure drops to 36% for positive experiences. This trend leaves business leaders with limited insights into customer churn and shifting behaviours.

Customers, however, continue to share opinions across diverse channels such as phone calls, live chats, online reviews, and social media, presenting new challenges and opportunities for feedback analysis.

When customers stop telling companies directly what's broken, businesses risk acting in the dark. But silence doesn't mean feedback has disappeared, it's just hidden in the data. In Singapore's hyper competitive market, leaders who connect experience, operational, and behavioral data can uncover these hidden signals, act faster, and turn silence into intelligence that fuels growth

Ng said.

Customer loyalty and changing expectations

The multi-dimensional nature of customer loyalty in Singapore is reflected in the survey results. While 55% of consumers say value for money is critical, 52% prioritise convenience, and 28% base business choice on customer service quality. The data indicates that by 2026, price alone will be insufficient to secure loyalty. Those choosing brands for customer service show higher satisfaction and trust rates (91% and 89% respectively) compared with other factors.

Consumers in Singapore are looking for quality of experiences, not just value to influence where and how they make purchasing decisions. The organisations leading from the front are building customer connections through exceptional experiences that create lasting impressions competitors cannot replicate.

Ng said.

Data, transparency, and privacy

Personalisation remains highly valued, with 79% of Singapore consumers preferring businesses that tailor offerings to individual needs, far exceeding the global average of 64%. Yet, just over half (54%) believe the benefits outweigh privacy concerns, indicating considerable caution over data use.

Transparency emerges as a key demand: almost two-thirds of respondents (63%) say they would share more personal data if organisations provided clearer communication about what was being collected, compared to 46% globally. Additionally, 53% would be more forthcoming if given greater control over data use or the option for deletion.

In a market where consumers are digitally sophisticated and privacy-conscious, transparency about data collection and usage isn't optional - it's essential for maintaining customer trust and loyalty. This presents both a challenge and an opportunity for Singapore organisations: they must demonstrate clear, tangible benefits when requesting personal information and stop asking for more data than necessary.

Ng concluded.