A recent study by Vodafone Business, in partnership with the London School of Economics, unveils that 51% of businesses across the Asia-Pacific (APAC) region have adopted Generative AI, significantly surpassing the global average of 45%. Leading the charge is Singapore, where 59% of businesses report using this transformative technology, establishing it as the global leader in AI adoption.
The study, which surveyed over 760 businesses and 1760 customers from Singapore, China, India, and Australia, also highlights that despite macroeconomic challenges, companies in the region are increasing their investments in digital transformation. A notable 70% of APAC businesses report increased budgets for technology initiatives, up from 60% in 2023.
Concerns Around AI’s Impact on Customer Trust
Despite the growing adoption, concerns persist. The study reveals that 65% of businesses are worried that the rise of emerging technologies like AI could erode customer confidence. The primary concern for these companies is privacy, with 57% expressing anxiety over how AI might affect customer data protection.
AI Can Strengthen Customer Trust
However, the study also suggests that AI could bolster customer trust. Businesses using AI have seen a 9% uplift in customer trust scores. More than 60% of customers in APAC express either the same or even more trust when Generative AI is employed by businesses. This sentiment is particularly strong in China (35%) and India (29%), where more customers say that the use of Generative AI increases their trust in organisations, compared to 23% in Singapore and 19% in Australia.
Interestingly, only 39% of customers say the use of AI makes them trust organisations less, highlighting that a significant portion of consumers remain open to its potential.
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The Trust Gap Between Businesses and Customers
Despite the positive outlook, a trust gap remains. While 85% of APAC businesses believe their use of technology adds value to customer interactions, only 67% of customers share this view. The disparity is particularly evident in Singapore, where only 45% of customers believe that businesses use technology in ways that inspire trust and confidence, with Australia trailing at 34%.
In contrast, the majority of customers in China (71%) and India (74%) show higher levels of confidence in the way businesses implement technology.
Bhupinder Singh, President of Vodafone Business, Asia-Pacific and Middle East, emphasises the need for transparency: “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.”
Building a Digital Future Based on Trust
To address the challenges of building trust, Singh advises businesses to focus on robust digital infrastructure, advanced networks, and comprehensive security solutions. “It’s 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,’” he concludes.
As companies across the region navigate the evolving landscape of AI and emerging technologies, the key to success will be finding a balance between innovation and maintaining customer confidence through transparency and responsible AI use.
For more information on Vodafone’s findings, visit Vodafone Business: The Trust Gap Report.
