Singaporeans wary of AI misuse as data privacy fears mount

Human interaction remains an expectation for AI in more complex scenarios.

Singapore consumers are increasingly turning to artificial intelligence for convenience and efficiency—but not without limits.

Whilst many welcome AI-driven interactions, there is growing concern about how personal data is used, particularly when suggestions feel intrusive or irrelevant, according to customer communications provider Sinch.

This tension—described as the “personalisation paradox”—reflects a market that expects brands to deliver value without overstepping boundaries.

The firm noted 44% of Singaporean consumers say they are only open to AI-generated recommendations if the content is genuinely relevant.

In sectors like financial services, the margin for error is especially narrow—only 38% of consumers are open to AI-powered advice, with many expressing uncertainty or discomfort.

AI adoption in Singapore is strong, especially for low-stakes, transactional tasks. Around 45% of consumers say they would use AI-powered customer support if the technology is backed by trustworthy information.

In healthcare, 57% are comfortable using AI for tasks like appointment scheduling. However, just 4% would choose AI or chatbots as their first option for customer service, indicating a persistent trust gap.

Human interaction remains a core expectation in more complex or sensitive scenarios. Seven in ten Singaporeans prefer speaking with a person through email, live chat, or call centres when dealing with high-stakes issues.

In healthcare, 68% express concern about the accuracy of AI responses, and over 40% cite data privacy as a major worry. Similarly, in financial services, half of respondents prefer to speak with a person when dealing with fraud-related matters.

Security and trust continue to influence consumer preferences. Rich Communication Services (RCS) verification messages are seen as the most trustworthy option for financial transactions, with 64% of respondents favouring RCS over standard SMS, which was preferred by only 17%.

Multi-factor authentication is also viewed positively, with 58% saying it makes them feel safer when shopping online—despite 21% acknowledging it can be inconvenient.