Tuesday, 29 April 2025
29.2 C
Singapore
30.3 C
Thailand
26.5 C
Indonesia
28.9 C
Philippines

Singapore retailers embracing AI but fear loss of personal touch in shopping

Singapore retailers are increasingly adopting AI, but concerns are rising about its impact on personal shopping experiences, a new survey reveals.

Retailers in Singapore are preparing for a significant transformation in customer engagement, driven by artificial intelligence (AI). A recent survey by Twilio, a leading customer engagement platform, reveals that a staggering 93% of Singaporean retailers believe AI will become an essential part of retail operations within the next five years. This survey, conducted during the 2024 National Retail Federation’s Retail’s Big Show Asia Pacific, highlights the growing importance of AI in the retail sector.

The survey also found that 70% of Singapore retailers foresee countless AI applications in the retail industry over the next few years. From personalising customer interactions to optimising inventory management and supply chains, AI is expected to revolutionise various aspects of retail, both online and offline. This growing recognition of AI’s potential pushes retailers to explore its capabilities in enhancing customer experiences and improving operational efficiency.

Early AI adoption brings positive results

Retailers have already begun to see the benefits of AI in driving business success. One notable example is Trade Me, New Zealand’s largest online auction platform. By utilising AI-powered predictive models, Trade Me was able to accurately forecast buyer and seller behaviour, enabling the marketing team to launch targeted campaigns across multiple channels without the need for additional data science resources. This led to a significant boost in email and ad campaign performance, as well as improved return on ad spend (ROAS) and operational efficiency.

As more retailers adopt AI, the technology is proving to be a valuable tool for achieving better business outcomes. Predicting customer behaviour and tailoring marketing efforts has become a key advantage in the competitive retail landscape.

Concerns over AI’s impact on personalisation

Despite the widespread adoption of AI, Singaporean retailers are concerned about its potential downsides. According to the survey, 71% of retailers fear that AI-powered chatbots and automated systems could lead to more impersonal shopping experiences. As AI becomes more integrated into retail operations, finding the right balance between scalability and personalisation is becoming a critical challenge.

Retailers recognise that delivering personalised experiences is crucial, especially as consumers increasingly expect brands to provide tailored and even hyper-personalised interactions. To address these concerns, nearly half (45%) of retailers are prioritising customer data to ensure they can maintain a personalised touch in their engagements.

Nicholas Kontopoulos, Vice President of Marketing for Asia Pacific & Japan at Twilio, emphasised the importance of transparency in AI usage. He stated, “As more retailers employ AI throughout their business, they have to anchor their strategies and operations in transparency and demonstrate how they will use the data responsibly and ethically. This includes communicating their data policies clearly, informing their customers about how their data is being collected, and providing them with mechanisms to exercise privacy rights. Brands will also need to demonstrate how data is used to create tangible value and integrate their data to unlock deeper insights and deliver truly personalised experiences.”

As the retail industry continues to evolve with AI, retailers will need to navigate the complexities of personalisation and scalability. By leveraging customer data responsibly and maintaining a transparent approach, retailers can harness the power of AI to enhance customer engagement while preserving the personal touch that shoppers value.

Hot this week

Intel prepares for major layoffs ahead of Q1 earnings

Intel plans to cut over 21,000 jobs this week, aiming to rebuild its focus and engineering culture under new CEO Lip-Bu Tan.

Tenable uncovers critical privilege escalation flaw in Google Cloud Composer

Tenable exposes a GCP vulnerability in Cloud Composer that allows privilege escalation through interdependent cloud services.

Vulnerability exploitation spikes as Tenable joins Verizon to highlight patching delays

Tenable reveals critical CVEs remain unpatched for over 200 days, risking exploitation, as highlighted in Verizon’s 2025 DBIR.

GitLab announces general availability of GitLab Duo with Amazon Q

GitLab announces the general availability of GitLab Duo with Amazon Q, combining DevSecOps and AI to accelerate secure software development.

Mac-style tools are coming to iOS 19 and iPadOS 19 to boost productivity

Apple is planning Mac-style updates in iOS 19 and iPadOS 19 to boost productivity, with features expected at WWDC 2025.

India could manufacture all US-bound iPhones by the end of 2026

Apple plans to manufacture all iPhones for the US market in India by the end of 2026 to avoid China tariffs and secure its supply chain.

Razer Launches Pro Click V2 and V2 Vertical Mice: Blending Gaming and Productivity

Razer's new Pro Click V2 and V2 Vertical mice offer gaming precision and ergonomic comfort, with AI prompt access and long battery life, available now!

Nintendo Pop-Up Store and Mario Kart Fun Return to Jewel Changi Airport

Experience the magic of Nintendo at Jewel Changi Airport with the return of the Pop-Up Store and the exciting Mario Kart Jewel Circuit Challenge!

Lian Li’s new Lancool 207 Digital case brings a 6-inch LCD screen to your PC

Lian Li's Lancool 207 Digital PC case brings a bright 6-inch LCD screen to your setup, offering style, function, and full customisation.

Related Articles

Popular Categories