The Gen XY Lifestyle
The Singapore Service Paradox: We Love AI Speed, But We Still Want a Real Person
You want your query sorted now, but you also want to feel safe and secure.
A new report by Sinch reveals Singaporean consumers are embracing AI for efficiency, but woe betide the company that forgets the human touch.
Singaporeans are known for being tech-savvy and pragmatic early adopters. So, it’s no surprise that we’re open to Artificial Intelligence (AI) speeding up our daily lives and sorting out our customer service issues.
But before businesses rush to replace every call-centre worker with a chatbot, a new report from Sinch, a leader in customer communications, has a critical warning: trust and human connection are non-negotiable.
The “State of Customer Communications” report confirms a major challenge for businesses: how to harness AI for efficiency without alienating a customer base that demands security and the reassurance of a real person.
Fast and Furious… But Only for the Basics
The research, which surveyed over 600 consumers in Singapore, found that we’re willing to embrace AI for the convenience and speed it offers, but with clear expectations.
For example:
- Almost half (forty-five percent) of Singaporean consumers would use AI-powered customer support, if the technology is backed by reliable information from the brand.
- Over half (fifty-seven percent) are comfortable using AI for basic healthcare tasks, like scheduling appointments.
However, when the stakes get higher, the trust evaporates. Just four percent would choose AI or chatbots as their first choice for customer support. This suggests a major lack of trust when it comes to data privacy and security.
In fact, for complex, sensitive, or high-stakes situations—like a major issue with your banking or health—seven in ten customers still prefer to engage with a human via email, live-chat, or a call centre.
The ‘Personalisation Paradox‘
It’s a tightrope walk for brands, especially when it comes to personalised services.
While many Singaporeans appreciate AI-driven recommendations—like tailored shopping suggestions—they are highly selective about how they want to be engaged.
The report highlights the “personalisation paradox”: the desire for relevant experiences clashes with growing concerns about data privacy.
A significant forty-four percent say they are only open to receiving suggestions if they are relevant and genuinely useful. If AI suggestions feel invasive or misinformed, businesses risk customer churn.
This selective approach is particularly evident in financial services: only thirty-eight percent of Singaporean consumers are open to AI-powered advice, with the rest remaining unsure or unconvinced.
Security is the Ultimate Loyalty Driver
When it comes to fraud and security, the human-or-nothing preference is strong. Half of all Singaporeans would rather speak to a person on the phone about potential fraud than use a digital portal.
However, the research also shows that non-AI tech is helping to build crucial trust:
- Around two-thirds (sixty-four percent) consider Rich Communication Services (RCS) verification messages the most trustworthy option for financial transactions, far surpassing basic SMS at just seventeen percent.
- Fifty-eight percent say multi-factor authentication makes them feel significantly safer when shopping online, even though twenty-one percent admit it can be an inconvenience.
“Singaporean consumers are proven early adopters, embracing the efficiency and convenience that AI brings to their brand experiences,” said Wendy Johnstone, EVP APAC at Sinch. “The businesses that will win are those that blend digital efficiency with the human touch, giving customers control and choice at every step”.
The takeaway? AI should simplify the routine, but real people need to be there for when it matters most.
