Singapore leads in AI adoption, but customer service still falls short

Singapore may be one of the most AI-forward markets in the world, but when it comes to customer service, AI is still missing the mark.

According to Qualtrics’ "Consumer experience trends 2026" report, while two-thirds (68%) of consumers in Singapore believe AI will have a positive impact on society, the highest level of optimism globally, less than half (40%) trust organisations to use AI responsibly.

This trust deficit, coupled with frustration over poor AI-powered service, highlights a gap between consumer expectations and real-world experiences.

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Despite widespread adoption, with 73% of consumers now using AI for daily tasks, AI-powered customer support ranked among the worst-rated applications for convenience, time savings, and usefulness. Nearly one in five consumers said AI for customer service provided no benefit at all, according to the report.

Even as trust in responsible AI use has ticked up slightly from 36% last year to 40%, significant concerns persist. More than half (55%) of Singapore consumers worry about losing human connection in automated interactions, while 58% are concerned about personal data misuse, both figures higher than the global average.

Consumers remain clear on what they want: AI that enhances human experiences, not replaces them. Singapore customers still prefer traditional touchpoints, with 54% choosing human channels for support compared with 46% who opt for digital ones.

At a time when customer insights are more crucial than ever, consumers are speaking up less. After a bad experience, only 39% of Singapore consumers share feedback directly with companies, and that drops to 36% after a good one. This decline mirrors a global trend, as Qualtrics found that 30% of consumers now stay silent after a poor experience, a nine-point increase over five years. With fewer direct feedback loops, businesses risk flying blind when it comes to understanding churn.

However, customers aren’t entirely quiet, they’re just talking elsewhere. Their opinions now show up across fragmented channels such as social media, reviews, live chats, and call transcripts. The report suggests that companies that integrate these scattered “signals” with operational and behavioural data will be best positioned to act on real sentiment in 2026.

While 55% of Singapore consumers still cite good value for money as a key factor in brand choice, convenience (52%) and good customer service (28%) are close behind.

The report notes that consumers who choose businesses based on service quality show significantly higher satisfaction (91%) and trust (89%) than those who buy on price alone. In other words, price may bring customers in, but service keeps them there.

As economic uncertainty persists, Qualtrics suggests brands move away from competing purely on cost and instead invest in delivering consistent, human-centric experiences that build lasting relationships.

Consumers’ appetite for personalisation remains strong, with 79% of Singaporeans preferring tailored experiences, compared to 64% globally, but concerns around privacy are growing. Only 54% believe the benefits of personalisation outweigh the privacy cost.

Transparency could be the bridge. Nearly two-thirds (63%) of Singapore consumers said they would share more data if companies were clearer about what was being collected, the highest level globally. Another 53% said they would do so if they had more control over how their data was used or deleted.

“Consumers in Singapore demonstrate unmatched openness to AI, but trust and security concerns are eroding even their willingness to accept fully automated customer services,” said Irene Ng, customer experience strategist, SEA at Qualtrics. “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.”

Ng noted that declining feedback rates are emerging as a major challenge for brands. When customers stop sharing feedback directly, companies risk operating in the dark.

However, she pointed out that silence doesn’t mean the feedback is gone, it has simply shifted into other data sources. In Singapore’s hyper-competitive market, the brands that can connect experience, operational, and behavioural data to uncover these hidden signals will be the ones able to act faster and turn silence into intelligence that drives growth.

She noted that Singapore consumers are increasingly prioritising quality experiences over price. “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.”

“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,” Ng added. “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.”

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