AI adoption in Singapore’s retail sector is growing rapidly, but businesses still prefer to keep humans in control, according to new research from monday.com. While nearly all retailers are now experimenting with AI, only a small fraction are willing to let it operate independently across the full customer journey.
High adoption but limited trust
The study surveyed 350 retail decision-makers in Singapore and another 1,300 globally. It found that 98 per cent of Singaporean retailers are already using or exploring AI applications. The most common uses include customer service (57 per cent), marketing and content creation (48 per cent), sales assistance (48 per cent), and inventory management (43 per cent).
Despite this high adoption, only 10 per cent of retailers trust AI to manage the customer lifecycle autonomously. The majority believe that human involvement remains essential, with 70 per cent saying that collaboration between people and AI is the most effective approach. Most businesses now rely on AI to generate insights and streamline tasks, while humans handle empathy, trust, and personal engagement.
Gavin Watson, Senior Industry Lead at monday.com, said, “Singapore’s retailers see AI as an opportunity to deliver personalised, intelligent and faster customer experiences. However, to fully realise these benefits, businesses need the trust, skills, and resources to make the technology viable for them. Transparency in how AI is implemented is critical, both internally and externally, so that employees and customers feel secure and empowered.”
Smaller retailers face more obstacles
The findings also highlighted a growing divide between large and small businesses. While 94 per cent of respondents overall agreed that AI could help local retailers compete with global giants, only half of small retailers with up to 50 employees shared this view. Among micro retailers with fewer than 10 staff, adoption is even slower due to limited budgets, resistance from employees, and lack of expertise.
Employee pushback remains a significant barrier, with 69 per cent of businesses citing resistance as an obstacle. This was particularly strong in shopping centres and malls, where 77 per cent of employees resisted AI adoption, often out of concerns over job security and skills devaluation.
Watson added, “Instead of viewing this as a challenge, physical retailers must capitalise on this opportunity by enhancing human touch with AI. Physical retail still holds a unique advantage of creating personalised, emotionally resonant in-store experiences that no algorithm can replicate. That’s their edge, and it’s worth protecting.”
In contrast, larger retailers employing more than 1,000 staff are better equipped to embrace AI. Many have established in-house AI teams (44 per cent) or appointed AI specialists at the C-suite level (50 per cent), giving them a head start in integrating the technology across operations.
Human oversight and sustainability in focus
The study revealed that 93 per cent of Singaporean retailers want AI to remain under human supervision, with only 7 per cent allowing AI to make independent decisions. Around 71 per cent anticipate challenges in connecting AI across all customer touchpoints. Data privacy concerns are also particularly pronounced in the health and beauty sector, where 73 per cent of respondents highlighted it as a major barrier.
Nearly three-quarters of businesses believe that customers will reward transparency, with loyalty expected to be stronger for brands that openly explain how they use AI.
AI is also increasingly being linked to sustainability efforts. With Singapore aiming for net-zero emissions by 2050, 75 per cent of retailers said they are using AI to cut waste, optimise production, and adopt circular economy practices.
Watson concluded, “AI is rapidly shaping Singapore’s retail landscape. Whether powering sustainable growth, enhancing productivity, or personalising the customer journey, the future will be driven by close partnerships between technology and people. But we must ensure that progress is matched by protecting the integrity of data, augmenting human roles, and building experiences that respect customer autonomy.”
