A Vodafone Business study reveals that 51% of businesses in the Asia Pacific (APAC) region have adopted Generative AI, surpassing the global average of 45%. Singapore leads globally with 59% of businesses using AI. The study, conducted in partnership with the London School of Economics, surveyed over 760 businesses and 1,760 customers across Singapore, China, India, and Australia.
Despite macroeconomic challenges, 70% of APAC companies have increased their budgets for digital transformation, up from 60% in 2023. However, concerns remain, with 65% of businesses fearing that AI may erode customer trust, largely due to privacy concerns (57%).
Interestingly, the study also highlights AI’s potential to strengthen customer trust, with a 9% increase in trust scores where AI is used. Over 60% of APAC customers trust businesses as much or more when AI is implemented. In China (35%) and India (29%), more customers report increased trust in AI-using businesses compared to Singapore (23%) and Australia (19%).
Nonetheless, a trust gap exists. While 85% of businesses believe technology enhances customer interactions, only 67% of customers agree. In Singapore, only 45% of customers trust businesses’ use of technology, with even lower trust in Australia (34%). By contrast, customer trust in China (71%) and India (74%) is significantly higher.
Bhupinder Singh, President of Vodafone Business, APAC and Middle East, emphasizes that businesses must build trust by prioritizing transparency, fairness, and data protection to succeed in the digital age. He also highlights the need for robust digital infrastructure to support the seamless adoption of emerging technologies.