AI adoption is on the rise in Singapore’s retail sector, with 98% of businesses exploring or deploying AI technologies. However, a mere 10% of retailers trust AI to autonomously manage the entire customer journey, according to a study by monday.com. The research surveyed 350 retail decision-makers in Singapore, revealing a significant gap between AI exploration and trust.
The study highlights that whilst 94% of retail leaders believe AI can help local retailers compete globally, only 50% of small retailers, defined as those with up to 50 employees, share this confidence. Employee resistance, particularly in shopping centres, remains a significant barrier, with 77% of employees showing reluctance towards AI adoption.
Gavin Watson, Senior Industry Lead at monday.com, emphasised the importance of human oversight in AI implementation. “Singapore’s retailers see AI as an opportunity to deliver personalised, intelligent, and faster customer experiences,” he said. However, he noted that transparency and trust are crucial for successful AI integration.
The research also found that 75% of retailers are using AI to achieve sustainability goals, such as optimising production and reducing waste. This aligns with Singapore’s national environmental standards and goals like the Green Plan and net-zero targets by 2050.
In conclusion, whilst AI offers significant potential for enhancing competitiveness and sustainability in Singapore’s retail sector, the lack of trust and employee resistance pose challenges. Future efforts must focus on building trust and ensuring transparency to fully realise AI’s benefits.
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