Consumers' excitement over AI fades as trust in responsible use declines

Comfort with AI dropped 11% over the past 12 months.

The excitement of Singaporean consumers toward AI use by institutions is slowly fading into scepticism.

A Qualtrics report showed that consumer comfort levels with AI have dropped 11% on average over the last 12 months, whether it’s being used for placing orders or seeking medical advice.

Additionally, six in 10 have low trust levels in organisations to use AI responsibly.

The report also found that consumers are increasingly concerned about AI use in customer service, with five in 10 seeking human agents to connect with, four in 10 fearing data misuse, and a similar percentage reporting unsatisfactory interaction quality.

“Companies are more excited than consumers about using AI, and there’s a lot of work to do to persuade everyone of the benefits," said Isabelle Zdatny, Customer Loyalty Specialist, at Qualtrics.

"The best uses of AI right now in customer experience are when it’s focused on solving issues or problems people care about,” Zdatny added.

Whilst instances of poor customer experiences in Singapore have lessened over the past year, consumer trust (-4%), likelihood to recommend (-5%), and satisfaction (-4%) with brands have also seen a decline.

In Singapore, the main drivers of poor customer experiences are communication issues (43%), service delivery failures (42%), pricing concerns (39%), and employee interactions (37%).

Amongst firms, mobile providers, hospitals, automotive companies, and parcel delivery services received higher volumes of complaints about poor experiences from consumers, whilst airlines, streaming services, and department stores received the least.

Although some consumers report their negative experiences, others choose to stay silent.

According to Qualtrics, Singaporean consumers are seven percentage points less likely to provide feedback on a poor experience, with most choosing to share it only with family or friends.

“Customers expect better experiences but aren’t willing to provide brands with the insights needed for improvement. Brands must rethink their engagement approach and go beyond traditional surveys,” Zdatny said.