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More than half of APAC businesses adopt generative AI, but concerns over customer trust grow

Over half of APAC businesses have adopted generative AI, with concerns about customer trust growing, despite some seeing trust improvements.

A new study by Vodafone Business has revealed that 51% of companies in the Asia-Pacific (APAC) region have adopted generative AI, surpassing the global average of 45%. Leading the global charge is Singapore, where 59% of businesses surveyed report the use of this emerging technology.

This comprehensive study, developed in partnership with the London School of Economics, surveyed over 760 businesses and 1,760 customers across Singapore, China, India, and Australia. The findings highlight a growing trend in the region towards embracing digital transformation, with 70% of businesses increasing their technology budgets in 2024, compared to 60% in 2023. This comes despite economic uncertainties affecting many sectors globally.

However, the rapid adoption of AI has also sparked concerns. According to the study, 65% of businesses in APAC worry that emerging technologies like AI might erode customer trust, particularly when it comes to data privacy. Nearly 57% of these businesses cite privacy concerns as the primary issue.

AI and its potential to boost customer trust

Despite these concerns, the study suggests that AI could help build, rather than erode, customer trust. It shows a 9% increase in customer trust scores when businesses use AI responsibly. More than six in ten customers in APAC trust companies the same, or even more, when generative AI is employed.

The trust levels vary across the region. In China, 35% of customers say they trust a business more when AI is used, while 29% in India feel the same. In contrast, only 23% of customers in Singapore and 19% in Australia share this sentiment. However, only 39% of APAC customers reported that using AI makes them trust organisations less.

These findings suggest that AI’s impact on customer trust largely depends on how businesses use the technology. Proper implementation with transparent practices may actually boost confidence in the long run.

Customer trust gap and regional differences

Although AI shows potential for improving trust, there is still a significant gap between how businesses and customers perceive its use. While 85% of APAC businesses believe that technology adds value to customer interactions, only 67% of customers agree. This discrepancy highlights the need for companies to align their technology strategies with customer expectations better.

In Singapore, less than half (45%) of customers feel that companies use technology in ways that build trust, with an even lower percentage in Australia (34%). On the other hand, customers in China (71%) and India (74%) display higher levels of confidence in how businesses utilise technology.

The study also uncovered differences in customer trust regarding data privacy and security. Businesses in China and India have higher levels of trust in these areas, with 82% and 79% of customers, respectively, feeling confident that their data is handled securely. In contrast, lower trust levels are seen in Singapore (65%) and Australia (62%).

Focus on building trust for the future

Bhupinder Singh, President of Vodafone Business for Asia-Pacific and the Middle East, highlighted the importance of trust in the region’s rapidly evolving digital landscape. He stated, “As businesses in the APAC region rapidly embrace AI and other emerging technologies, the key to long-term success lies in building and maintaining customer trust. To bridge this gap, businesses must use technology in a human way and prioritise transparency, fairness, and robust data protection measures.”

Singh further stressed the importance of strong digital infrastructure, saying, “It’s also essential for businesses to invest in robust digital infrastructure, advanced networks, and comprehensive security solutions. These foundational elements will support the seamless adoption of emerging technologies, ensuring that businesses are well-prepared and ‘Fit for the Future.'”

As companies in APAC continue to increase their use of AI and other emerging technologies, the challenge remains to ensure that these advancements build, rather than erode, their customers’ trust.

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