Singaporean Consumer Confidence in AI drops by 11%

Confidence in AI is Low, Get Back to Basics, Qualtrics concludes from its annual consumer experience report that came out recently.

Growing consumer scepticism towards AI, the emergence of the ‘silent treatment’ responses to both positive and negative brand experiences, a call for brands to get back to basics, and the essential role of trust in the privacy and personalisation debate are just some of the findings in Qualtrics’ fourth annual Consumer Experience Trends report, released today.

Drawing on 23,730 responses across 23 countries – including 798 from Singapore – the report provides critical insights for business and marketing leaders aimed at enhancing customer experiences, increasing market share, and driving revenue in 2025.

The Qualtrics 2025 Consumer Experience Trends report reveals:

AI hype gives way to scepticism: Only 36% of Singaporean consumers trust organisations to use AI responsibly, signaling a shift from initial excitement to growing scepticism.
Heightened expectations fuel a decline in loyalty: Despite fewer bad experiences, consumers are more likely to pull back on spending after a negative interaction.
Customers give brands the ‘silent treatment’: Consumers are increasingly staying silent about their experiences, whether good or bad, which makes it difficult for organisations to gauge customer satisfaction.
Today’s consumers want privacy and personalisation: While consumers want tailored experiences,there is discomfort with companies using unsolicited data to personalise interactions.
Consumers are clear – go back to basics: Trust is closely linked with customer loyalty and the best way for organisations to maintain it is by reliably delivering on their promises.

AI hype gives way to scepticism

Over the last 12 months, consumer comfort levels with AI have dropped 11% on average – from checking an order through to seeking medical advice. Concerns regarding AI’s role in customer experience have heightened too; specifically having a human agent to connect with (52%), misuse of personal data (49%), and poor quality of their interactions (44%). Added to this, 64% have low levels of trust in organisations to use AI responsibly.

“Companies are more excited than consumers about using AI, and there’s a lot of work to do to persuade everyone of the benefits. The best uses of AI right now in customer experience are when it’s focused on solving issues or problems people care about,” said Isabelle Zdatny, Customer Loyalty Specialist, Qualtrics.

Heightened expectations fuel a decline in satisfaction & trust

While customers are reporting fewer poor experiences directly, trust (-4%), likelihood to recommend (-5%), and satisfaction (-4%) declined in Singapore over the last year. The volume of consumers cutting spending after a poor experience also increased by 6% in the same period.

The leading cause of poor customer experience in Singapore is communication problems (43%), followed by service delivery issues (42%), pricing concerns (39%), and employee interactions (37%). Consumers reported a higher volume of poor experiences with mobile providers, hospitals, automotive companies, and parcel delivery services, while airlines, streaming services, and department stores received the least.

“There is no excuse for getting the fundamentals of good customer experience wrong, but too often consumers are saying this is what’s happening with poor communication and service issues. High-performing industries continue to raise the bar on what good customer experience looks like, and with more than half of bad experiences ending in a spending cut, businesses and governments can no longer afford to fall behind,” said Zdatny.

Consumers give brands the silent treatment

For businesses, the challenge of meeting expectations is compounded by a growing number of consumers giving brands the silent treatment – when they’re happy and annoyed. Since 2021, consumers in Singapore are 7 percentage points less likely to say something about a bad experience.

The most common response from consumers was to tell family or friends about it. Around a third of consumers share feedback directly with a company, and they are least likely to post something on social media.

“Customers are giving brands the silent treatment, and if organisations don’t find a way to fix this issue we could see more disgruntled consumers in Singapore,” said Zdatny. “Customers are expecting a better experience, but simultaneously they’re not willing to share the insights brands need to deliver one. Overcoming this gap requires brands to rethink how they engage with customers, and go beyond the traditional feedback survey.”

Consumers are clear – go back to basics

What consumers care about most is that they can trust what a business tells them. Setting accurate expectations is as valuable as speed and convenience. New products and services must not come at a cost to the trust organisations have already earned. “It’s dangerous to assume that existing customers will stay loyal without intentional effort to keep them. To deliver a great customer experience, following through on the most basic commitments and delivering what’s been promised is what’s most important to consumers,” said Zdatny. “Following through on the most basic commitments carries the most weight with customers. New initiatives rolling out are outside customers’ comfort zones, so it is essential to have the basics in place and uphold them. Customers are more demanding than ever, and it’s dangerous to assume that existing customers will stay loyal without intentional effort to keep them. ”

Today’s consumers want both privacy and personalisation

Consumers in Singapore are torn when it comes to getting a personalised experience. Almost three-quarters of consumers (72%) prefer to buy from companies that tailor their experiences. But 65% are concerned about the privacy of giving up their personal information, with just 40% trusting the companies they’ve shared personal information with to use it responsibly. When consumers do trust companies with their personal information, they are much more comfortable with their data being used to tailor experiences to them.

“Giving customers what they want is not a conversation about privacy or personalisation. It’s about trust,” said Zdnatny. “Brands need to identify what they need to do to win trust back without overstepping the mark and turning customers away instead.”

(This article was adapted from a press release).