Study: APAC consumers embrace AI, but anxious about data privacy

Consumers in Asia Pacific (APAC) are excited for technological advancement with 68% believing that AI is having a having a positive impact on the world, compared to over half (57%) globally. China leads the region with ranking first out of 50 global market surveyed. 

With openness to new technology, brands can introduce and expand AI-driven products and services in the region. Marketing efforts should focus on highlighting the positive impacts of AI and how it can enhance consumer experiences. Brands can leverage this receptiveness to test and refine AI innovations, ensuring they meet local preferences before a broader international rollout. 

This is according to a new study by Ipsos titled "Understanding Asia" where it surveyed consumers in Malaysia, New Zealand, Vietnam, Thailand, Philippines, Indonesia, India, Australia and Singapore. 

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Despite optimism around AI, fears about AI, digital privacy and security are high. In fact, seven in 10 of APAC consumers in the APAC region are concerned about how their information is being collected by companies. This concern is particularly high in the Philippines (86%), Thailand (81%) and Singapore (81%).

As brands push for greater personalisation of services, they will need to be mindful to find the balance between making it easier for their customers to find new products, but also ensure that their privacy is being respected. This includes the need to develop and communicate robust privacy measures and build trust and maintain consumer confidence, said the study. 

Interestingly, the study found that young people in Asia are generally nervous about the future. More than half (57%) of Gen Zs in APAC said they would have preferred to grow up at the time their parents were children. As such, brands can capitalise on the nostalgia trend by integrating elements of familiar past traditions with modern innovation.

In addition, with nervousness about the future, there are opportunities for brands to display more empathy with consumers in their communication and marketing and connect with them at their level.

At the same time, 73% in APAC say they are doing all they can to save the environment, with consumers in Vietnam (82%), New Zealand (78%), Singapore (77%), Malaysia (73%) and Australia (73%) saying that companies do not pay enough attention to the environment. This presents an opportunity for brands to become environmental leaders and demonstrate commitment to the cause. 

If action is not taken or corporate leaders are not seen as pulling their weight, apathy could start to set in with it being apparent with majorities in India, Taiwan, Indonesia and Thailand where consumers feel it is already too late to do anything about climate change. 

In a separate study by eCommerce platform Lazada, it found that 88% of consumers make purchase decisions via AI-led recommendations. 

It added that 8% of Southeast Asian shoppers today embrace AI in their personal life, including AI chatbots (47%), visual product search (40%) and translations (40%) when they are online shopping. AI chatbots and visual product searches are the most commonly used AI-powered features in online shopping too where the top usage scenarios for AI chat bots being enquiring product availability (73%), getting information about delivery status (70%) and learning about rewards and membership (66%). 

On top of that, AI-powered features are also an effective tool for price-conscious Southeast Asia shoppers, where 49% indicated price comparison as one of the most preferred features on an eCommerce platform. 

With the integration of Ai features into online shopping, shoppers are also feeling more confident in using eCommerce platforms to enhance their shopping experience. Of which, 80% of shoppers use AI features on eCommerce platforms at least once a week. Vietnamese (92%) and Filipino (91%) shoppers show a higher frequency, revealed the study. 

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