APAC customers reveal trust in AI, but concerns persist

Trust certainly plays a big role in shaping customer perceptions. In Asia-Pacific (APAC), a major proportion of consumers trust companies that use advanced technologies. According to a recent study, 60% of APAC customers trust organizations that embrace productive artificial intelligence (Gen AI). They also maintain or increase their trust in such businesses. This growing relationship between AI and consumer trust is reshaping the way companies engage with their customers and opening up a debate about the balance between innovation and trust.

However, not everyone is convinced. While 60% of respondents expressed trust, a significant 39% said that the use of Gen AI by organizations has made them less trusting. The study, conducted by Vodafone Business, surveyed more than 2,500 customers and businesses in Singapore, China, India, and Australia. Various opinions emerged on the subject.

The survey points out that 57% of businesses attribute this concern to how customers perceive the handling of their sensitive information Why do businesses trust AI?

Looking deeper into the numbers, there are significant regional differences. In China, for example, 35% of customers say their trust in companies has increased when using Gen AI. Similarly, in India, the figure is high, with 29% of respondents sharing the same sentiment. In Singapore and Australia, however, the numbers are lower, with only 23% and 19% of customers reporting an increase in trust, respectively.

On the other hand, there seems to be more concern about AI in the business world. Around 65% of companies in APAC are concerned that the adoption of AI technologies could actually reduce customer trust, mainly due to fears around privacy and personal data. The survey points out that 57% of businesses attribute this concern to how customers perceive the handling of their sensitive information.

However, businesses are not backing down from their investments in AI. More than half of APAC companies have integrated Gen AI into their operations, with Singapore leading the way. 59% of businesses in Singapore have adopted Gen AI, exceeding the global average of 45%. This trend points to a broader commitment to digital transformation across the region, with more than 70% of APAC companies planning to increase their technology budgets.

The study reveals that this trust is strongly linked to how secure customers feel about their personal data A gap between business optimism and customer concerns

Despite the advancements, there seems to be a disconnect between how businesses and customers see the benefits of AI. The study highlights that 85% of APAC companies believe that technology, particularly AI, has improved their interactions with customers. However, only 67% of customers share this belief, suggesting a gap in perception. This disparity is more pronounced in some regions. In Singapore, for example, only 45% of customers feel that companies are using AI in a way that inspires trust, compared to 34% in Australia. Companies attribute this mainly to customers not realizing how they are actually using AI.

In contrast, the situation is more optimistic in China and India, with 71% of customers in China and 74% in India expressing confidence in the way businesses are using AI. The study reveals that this trust is strongly linked to how secure customers feel about their personal data. While 82% of Chinese respondents believe that companies protect their data well, this figure drops to 65% in Singapore and 62% in Australia.

The key drivers behind Gen AI adoption are primarily to innovate customer and employee experiences (44%) Businesses put Gen AI at the forefront

Amid these mixed feelings from customers, APAC businesses continue to prioritize Gen AI. According to Salesforce‘s research, 83% of C-suite executives in the region rank Gen AI as one of their top three business priorities. Furthermore, 54% of businesses already have a clear Gen AI strategy in place, while 40% are currently working on one. This shows a strong focus on not only incorporating AI into operations but also doing so in a structured and forward-thinking way.

The key drivers behind Gen AI adoption are primarily to innovate customer and employee experiences (44%), meet the growing demand for personalized experiences (44%), and improve efficiency (43%). As companies accelerate their AI efforts, many see Gen AI as the future of business operations in APAC, despite the lingering concerns of an important portion of the customer base.

The relationship between AI and trust in the APAC region is complex. While many customers are on board with AI-driven services, businesses must address concerns about privacy and security to win over the remaining skeptics.

Featured image credit: Furkan Demirkaya / Midjourney