More than half (51%) of businesses in the Asia-Pacific (APAC) region surveyed in a study have adopted generative AI, Vodafone Business found through a survey.
This exceeds the global average of 45%, and findings show that Singapore tops global generative AI adoption with 59% of firm reporting use.
The study, developed in partnership with the London School of Economics, covered more than 760 business and 1760 customer respondents across Singapore, China, India and Australia –
Results also show that more businesses in APAC are increasing their investments in technology despite the macroeconomic environment.
More than two-thirds (70%) of APAC companies report that budgets for digital transformation have risen this year, up from 60% in 2023.
However, despite the increased investment in technology, 65% of businesses in the region are concerned that the rise of emerging technologies like AI could potentially erode customer confidence. The top reason (57%) was customer’s privacy concerns around personal data.
Contrary to these concerns, the new Vodafone Business study suggests that AI can help bolster customer trust through a 9% uplift in customer trust scores.
This is due to strong underlying trust in businesses’ use of AI in the region. Over three in every five customers in APAC trust organisations the same or even more when generative AI is used.
More customers in China (35%) and India (29%) say that the use of generative AI will increase their trust in an organisation, compared to customers in both Singapore (23%) and Australia (19%).
Only 39% of APAC customers say that the use of generative AI would make them trust an organisation less.
While new technologies like AI have the potential to increase customer trust, the study also reveals a gap in how much customers agree that technology is being used in a way that adds value to them or safeguards their interests.
While 85% of APAC businesses believe their use of technology adds value to customer interactions, only 67% of customers in the region share this view.
In Singapore, less than half of customers (45%) feel that companies use technology in a way that inspires trust and confidence, with an even lower percentage in Australia (34%).
By contrast, the majority of customers in China (71%) and India (74%) demonstrate higher levels of trust and confidence in the way businesses use technology.
Lower levels of customer trust in businesses’ implementation of robust data privacy and security policies are also seen in Australia (62%) and Singapore (65%), compared to China (82%) and India (79%).
Bhupinder Singh, president of Vodafone Business in APAC and Middle East, said that 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,” said Singh.
He added that it’s also essential for businesses to invest in robust digital infrastructure, advanced networks, and comprehensive security solutions.
