- Kyle Chua
Singapore Brands Lag Behind Consumer, Employee Adoption of Generative AI, Study Finds
New research finds that Singapore brands are slow to adopt generative artificial intelligence (AI) solutions.
According to a new study by Adobe, less than 40% of Singapore brands have adopted generative AI, lagging behind consumer demand and employee usage of the emerging technology.
In comparison, more than 90% of the employees surveyed in the study said they've used generative AI in marketing and customer experience campaigns. The findings are similar in Southeast Asia, where 95% of employees said they are leveraging generative AI tools in marketing campaigns, while only 42% said the brands they work for use generative AI tools.
"A large majority of employees across SEA are incorporating generative AI tools at work, underscoring an urgent need for organisations to get ahead of the curve in AI usage regulations and policies," said Simon Dale, Vice President and Managing Director of Adobe Southeast Asia and Korea.
"As generative AI technologies continue to evolve, an absence of a set of strong guardrails and AI ethics principles can pose risks to the organisation and even erode consumer trust."
Up to 39% of consumers surveyed, meanwhile believe leveraging generative AI is necessary for businesses to remain competitive versus 35% in SEA.
The challenging economy has reportedly reduced the budgets of many brands in Singapore. In spite of this, these brands want to continue to prioritise and improve the customer experience to drive growth. They do, however, now have to save on costs, including cutting marketing spending. Adobe says 28% have already done so, with 35% more to follow in the next 12 months.
In response, Singapore brands want to drive efficiencies through technology, with about 70% turning to solutions that improve the workflow and 59% implementing generative AI. Only 64% of brands in SEA, specifically those across Malaysia, Singapore and Thailand, are investing in technologies that improve workflows, and 56% are implementing generative AI.
Adobe believes brand trust remains a very important factor in driving consumer spending. In the study, almost half of the consumers in Singapore said they are more likely to stay loyal to brands they trust, while 36% are more likely to spend more.
To build trust, brands have to keep consumer data safe and use it in a respectful manner, on top of providing products and services that benefit people and the planet and are developed ethically at the same time.
"Consumers are growing mindful of data privacy and how brands are delivering on sustainability and accessibility," said Dale. "To maintain brand trust amidst market shifts and evolving consumer behaviour, brands must demonstrate responsible practices and social accountability."
"This includes leveraging emerging digital technologies as a business advantage to not only improve engagement, but also keep consumer data safe," he added.
Over 93% of Singapore consumers say they will decrease spending with brands that do not keep their data safe and respect their privacy, with at least 46% even saying they will refuse to spend at all.
Adobe, however, notes that 43% of Singapore brands fail to see data safety as important to attracting and retaining consumers. For accessible and sustainable products and services, that number rises to 50% and 49%, respectively.
The study surveyed more than 16,113 consumers and 4,250 marketing and customer experience professionals globally in May 2023. From that number, the SEA analysis comprises a sample of 1,005 consumers and 676 marketing and customer experience professionals across Malaysia, Singapore and Thailand.
An Adobe study has found that less than 40% of Singapore brands have adopted generative AI, lagging behind consumer demand and employee usage of the emerging technology.
In comparison, more than 90% of the employees surveyed in the study said they've used generative AI in marketing and customer experience campaigns.
Up to 39% of consumers surveyed, meanwhile believe leveraging generative AI is necessary for businesses.