Based on a survey of more than 20,000 consumers across 14 countries, including 1,500 in Singapore, the report shows a significant rebound in comfort with AI after a dip in 2025. Today, 73 per cent of Singaporeans use AI daily and half believe AI will have a positive effect on society, a rise of nearly nine percentage points compared to 2024.
Still, the enthusiasm fades when it comes to AI in customer service. It is the lowest-rated AI application in terms of convenience, usefulness, and time saved. Nearly one in five consumers in Singapore say AI-powered customer support has offered no benefit at all, making it the least appreciated use case.
This mismatch is largely due to how AI is being implemented. “Brands have mixed up AI adoption with AI acceptance,” says Irene Ng, customer experience strategist at Qualtrics Southeast Asia. “AI was never meant to replace human service; it was designed to enhance it. But when chatbots are used to cut costs rather than solve customer problems, with people trapped in endless automated loops, it prioritises efficiency over experience, which only alienates customers.”
The data shows that 55 per cent of Singapore consumers share concerns globally that AI reduces human connection, while 46 per cent worry about the poor quality of AI interactions. Moreover, 58 per cent fear that companies misuse their personal data to automate interactions, a figure higher than the global average of 53 per cent.
AI customer service fails to deliver
Singapore consumers strongly prefer human engagement for customer support, with 54 per cent favouring human channels over AI. Specifically, 19 per cent prefer in-person assistance and 18 per cent choose live chat with a real person, compared to only 10 per cent who would rather use AI chatbots. This preference is not a sign of resistance to technology but reflects disappointment with current AI experiences.
Meanwhile, survey fatigue is making things harder for companies trying to understand customer needs. Only 39 per cent of consumers offer direct feedback after a very bad experience, and just 36 per cent do so after a very positive one. “This silence appears like satisfaction until customers quietly leave,” Ng warns. “By the time they report a problem, they have often already decided to take their business elsewhere. Silent customers are not loyal customers; they are simply customers you haven’t lost yet.”
These trends have real consequences for businesses. Twenty-six per cent of Singapore consumers say they would reduce or stop spending after a poor experience. While value for money remains important for 55 per cent, only 28 per cent choose businesses solely for good service, showing that price is not the only factor that drives loyalty.
However, those who make service a priority report 91 per cent satisfaction and 89 per cent trust, higher than any other factor, including price. The report suggests that 2026 will distinguish companies using AI simply to cut costs from those using AI to create genuinely better experiences.
Calls for transparency and real value in data use
Transparency about data use is another major theme. Although 79 per cent of Singapore consumers want personalised experiences, among the highest globally, only 54 per cent feel the benefits are worth the privacy trade-off. Consumers demand more openness, with 63 per cent wanting to know exactly what data companies collect and 53 per cent seeking greater control, including the ability to delete their data.
Ng stresses the importance of an honest exchange, “Companies must show exactly what data they collect and the benefit it brings. Not vague promises of ‘improving your experience’ but clear, immediate value. They should collect less data, use it more effectively, and prove that the trade-off is worth it.”
At least for now, Singapore leads in AI optimism globally, but AI-powered customer service needs to move beyond gimmicks and cost-cutting automation. It must empower human agents and deliver meaningful improvements in the customer experience.
There’s a real opportunity for brands to seize: customers who choose businesses for good service show 91% satisfaction and 89% trust, higher than any other driver including price. 2026 will separate companies that use AI to cut costs from those that use AI to create better experiences.
“Consumers in Singapore are not against digital technology, they are against bad digital experiences,” says Ng. “Customers should not have to choose between AI speed and human understanding, they should get both.”