While brands are rapidly adopting AI and seeing strong operational returns, there remains a gap between what they believe they are delivering and what customers experience, according to customer engagement technology provider Twilio.
In a survey of over 7,600 consumers and 600 business leaders in 18 countries, it found that AI adoption is accelerating in Singapore, as businesses seek to deliver more personalised customer experiences.
Since 2024, more Singapore firms are using AI to analyse customer data and identify needs (94 per cent, up from 66 per cent). A growing number (77 per cent, up from 67 per cent) use AI to ensure branding and messaging consistency across channels, and 77 per cent (up from 72 per cent) use AI to maintain data security and compliance.
These efforts are yielding clear business outcomes, like increased customer spending (37 per cent), saving time (37 per cent), and costs (30 per cent).
Despite this, customer satisfaction has not caught up. While 90 per cent of organisations in Singapore believe their customer engagement is “good” or “excellent,” only 57 per cent of consumers agree.
There is a growing gap between brands and customers – it has grown to 33 per cent, up from 20 per cent in 2024. In addition, only 33 per cent of Singapore consumers feel that brands frequently personalise customer engagement, below the regional average of 41 per cent.
The impact is real. Over a third of consumers say they may stop using a brand, and 70 per cent will drop their purchase if engagements feel impersonal.
On the other hand, 94 per cent of Singapore consumers say they are more likely to buy when engagement is personalised in real time, according to the Twilio report.
Brands that take a more deliberate and transparent approach to data and deliver individualised, human and relevant experiences, are better positioned to build deeper, more meaningful relationships with their customers, said Robert Woolfrey, vice president for Twilio’s communications platform in Asia-Pacific and Japan.
“That’s what earns loyalty, strengthens the brand and drives long-term growth,” he added.
Human involvement still expected
Even as AI becomes more prevalent, Singaporean consumers still expect human involvement and control in brand interactions. Some 75 per cent of Singapore respondents say AI-powered interactions must feel human-like, while half of the respondents prefer to speak to a person if AI does not resolve their issue.
Transparency continues to play an important role. Some 52 per cent of respondents want to be told when they are interacting with AI, and a significant 86 per cent want to choose how brands communicate with them, instead of having it assumed by AI.
The Twilio report suggests that basic personalisation is no longer enough. The future of customer engagement, it implies, must create experiences that are relevant, timely, tailored, and trustworthy.
