Singapore Brands Slow to Adopt Generative AI, Despite Employee and Consumer Demand, Adobe Study Reveals

While generative artificial intelligence (AI) is gaining momentum globally, Singaporean brands appear to be lagging behind in its adoption.

While generative artificial intelligence (AI) is gaining momentum globally, Singaporean brands appear to be lagging behind in its adoption. According to a study conducted by Adobe, less than 40% of Singapore brands have embraced generative AI, even as both employees and consumers express a growing interest in the technology.

In stark contrast, more than 90% of the employees surveyed in the study reported using generative AI in marketing and customer experience campaigns. These findings are mirrored in Southeast Asia (SEA), where 95% of employees are leveraging generative AI tools in their marketing efforts, but only 42% believe that their respective brands are utilizing generative AI.

Simon Dale, Vice President and Managing Director of Adobe Southeast Asia and Korea, highlights the urgency for organizations to catch up with their employees in AI adoption. He states, “A large majority of employees across SEA are incorporating generative AI tools at work, underscoring an urgent need for organizations to get ahead of the curve in AI usage regulations and policies. As generative AI technologies continue to evolve, an absence of strong guardrails and AI ethics principles can pose risks to the organization and erode consumer trust.”

Interestingly, up to 39% of consumers surveyed in Singapore believe that leveraging generative AI is necessary for businesses to remain competitive, compared to 35% in SEA.

The study also reveals that economic challenges have led many Singaporean brands to reduce their budgets. Despite budget constraints, these brands remain committed to enhancing the customer experience, albeit with cost-saving measures such as reducing marketing spending. About 28% of these brands have already cut marketing budgets, with an additional 35% planning to follow suit in the next 12 months.

In response to these challenges, Singaporean brands are turning to technology to drive efficiencies. Approximately 70% are seeking solutions to improve workflow, with 59% implementing generative AI. Across SEA, including Malaysia, Singapore, and Thailand, 64% of brands are investing in technologies to enhance workflows, while 56% are adopting generative AI.

Adobe emphasizes the critical role of brand trust in influencing consumer spending behavior. Nearly half of Singaporean consumers stated that they are more likely to remain loyal to brands they trust, while 36% are more inclined to increase their spending.

To build and maintain trust, brands must prioritize data security, ethical development practices, sustainability, and accessibility. Simon Dale explains, “Consumers are growing mindful of data privacy and how brands are delivering on sustainability and accessibility. To maintain brand trust amidst market shifts and evolving consumer behavior, brands must demonstrate responsible practices and social accountability, including leveraging emerging digital technologies to improve engagement while safeguarding consumer data.”

The study highlights a concerning disparity, as over 93% of Singaporean consumers express their intent to reduce spending with brands that fail to ensure data safety and privacy, with 46% even stating that they would refuse to spend entirely.

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