Data protection, transparency in AI-powered firms a priority for customer engagement: report

Clear terms and conditions, return policies and privacy are among ways to earn consumer trust.

Singaporeans revealed that they focused on data protection and transparency when engaging with AI-powered businesses, according to Twilio’s fifth annual State of Customer Engagement Report. 

Six in ten consumers in the city-state surveyed said that brands embracing AI could earn their trust by providing clear terms and conditions, return policies and privacy, among others.

Nearly half (48%) also said they would trust these businesses more if they disclosed how customer data was used in AI-powered interactions. Conversely, 98% of AI-driven businesses surveyed said they were transparent with how AI uses customer data.

“Customers today expect personalized experiences, but also want to understand how businesses use their data to shape those experiences,” Liz Adeniji, area vice president of Asia Pacific & Japan at Twilio Segment, said.

Nearly half (47%) of Singaporean businesses reported that their most pressing challenge of the year was finding a balance between security and the customer experience, with 41% of brands focusing on easing the signup process to improve customer engagement.

“Privacy-first measures have to be baked into every stage of implementation when brands utilize AI,” Adeniji said. “With the growing adoption of AI in this region, transparency around data usage is not optional, but a critical component of building customer trust and loyalty.”

This report is based on a global survey across 18 countries, including Singapore, of more than 4,750 business-to-consumer executives and 6,300 consumers.