Study: 82% of SG companies say they need to reinvent business due to AI

82% of local Singapore companies surveyed said that the introduction of artificial intelligence (AI) has required them to reinvent their business in 2024. This is above the global average of 62%. 

This is especially since 71% of Singaporean companies feel that their growth tactics are becoming less effective, according to a recent study by HubSpot.

Companies in Singapore are transforming their business models in response to global megatrends, such as generative AI and changing customer expectations. 

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As a result, 79% have said their approach to growth is changing significantly because of generative AI. This is in contrast to the global average of 57%. 

Of the companies surveyed, eight in 10 said they've evolved more in the past four years than the previous decades. This is the highest level of disruption across all countries surveyed, said the study. 

When it comes to customer expectations, marketers are left facing two major challenges - reach and relevance. In fact, 73% of local companies felt that merely meeting customers' expectations was no longer enough to drive success in 2024. 

According to the study, companies need to meet customers and do it with quality content that is personalised, unique and valuable. An additional 80% agree that delivering streamlined, personalised customer experience is key to business growth and success in 2024. 

However, Singapore companies are struggling to meet demands for multi-channel content, with 82% - the highest globally - sharing a need for tools to help remix content from one format or channel to another. 

In addition, Singapore is also the most likely across all countries to cite an increasing number of channels as a pain point (40%). 

Interestingly, Singapore consumers (48%) don't think businesses are transparent on their use of AI. This is in comparison to the 96% of Singapore brands that say they are transparent.   

This was the finding from customer engagement platform Twilio's fifth annual State of Customer Engagement Report, which explores how brands are implementing AI to build better relationships with their customers, and the latest consumer engagement trends. 

While AI continues to bridge the disconnect between brands and consumers, the report uncovered a wide experience gap between brands and customer engagement.

It found that 82% of Singapore businesses say they provide ‘good’ or ‘excellent’ customer engagement. However, only 62% of consumers agree.

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