Twilio’s latest State of Customer Engagement Report reveals that although more brands in Singapore are using AI to improve personalisation, most customers still feel misunderstood. The study, based on insights from over 7,600 consumers and more than 600 business leaders globally, including respondents from Singapore, shows a persistent disconnect between brand efforts and customer perceptions.
Singapore brands embrace AI, but consumers remain sceptical
AI adoption among Singapore businesses has grown significantly since 2024. According to the report, 94% of businesses are now using AI to analyse customer data and gain a deeper understanding of individual needs, up from 66% the previous year. More brands are also turning to AI to ensure consistent messaging across channels and uphold data privacy standards, with both metrics rising to 77%.
These efforts have delivered positive business results. Brands in Singapore report increased customer spending, improved time efficiency, and reduced costs. In particular, 37% noted a rise in customer spending, while 30% saw cost savings and another 37% saved time through automation.
However, these benefits have not translated into higher customer satisfaction. While 90% of local companies rated their customer engagement as ‘good’ or ‘excellent’, only 57% of Singaporean consumers agreed. The gap between business perception and customer reality has widened to 33%, up from 20% in 2024. Additionally, just 33% of local consumers feel that brands regularly personalise their engagement — below the regional average of 41%.
This mismatch comes with clear consequences. Some 38% of Singaporean consumers said they may stop using a brand due to impersonal engagement, while 70% would abandon purchases under the same conditions. Conversely, 94% are more likely to buy when engagement feels personalised in real time, signalling a major opportunity for brands to improve conversion by aligning technology with human expectations.
“Singapore businesses are investing in AI for customer engagement, and are already seeing strong operational returns. The next step is ensuring customers feel the benefits too,” said Robert Woolfrey, Vice President, APJ, Communications at Twilio. “Right now, there’s a gap between what brands are investing and what consumers are experiencing. When brands take a more deliberate and transparent approach to using data and focus on delivering individualised experiences that feel human and relevant, they will be better positioned to build deeper, more meaningful relationships with their customers. That’s what earns loyalty, strengthens the brand and drives long-term growth.”
Customers still expect human support and transparency
Even as AI becomes more common in customer service, many Singaporean consumers still expect human involvement when digital tools fall short. The report found that 75% of respondents value human-like interaction in AI-powered engagements, while half still prefer to speak with a real person when their issue cannot be resolved by AI.
Transparency also plays a key role. Over half (52%) of customers want to know when they are interacting with AI rather than a human. Furthermore, 86% expect to be given control over how brands communicate with them, rather than having AI make assumptions on their behalf. This reflects a strong desire for autonomy and trust in brand relationships.
A shift from personalisation to individualisation
The report concludes that businesses must go beyond traditional personalisation to stay competitive. Today’s consumers expect individualised engagement — experiences that are not only tailored and timely but also rooted in trust and relevance.
The findings suggest that businesses that align their customer engagement strategies with these expectations — using AI responsibly, with transparency and human oversight — will be better positioned to build lasting customer loyalty and drive long-term growth.
