Survey: 76% of SG firms lack enough or right data to make AI use effective

Nearly eight in ten (76%) of Singapore businesses said they do not have enough data or the right data to make their AI usage effective, while about a third (34%) have not ‘started talking about generative AI at all’.

These are the findings from a research from HubSpot, the customer platform for scaling businesses, which showed that many Singapore companies are contending with insufficient quality data and a disjointed tech stack even as costs and competition continue to rise.

While technology is seen among Singapore businesses as a tool to augment competitiveness and allow them to punch above their weight, barriers remain when it comes to quality data and a modern tech stack. 

HubSpot’s findings indicate that less than half (43%) of Singapore businesses agree that their data and systems are effectively interconnected to provide a cohesive and comprehensive view of their customers.

This can significantly increase complexity in managing customer interactions and experience, with the average business in Singapore needing to switch between more than 50 distinct applications just to manage customer interactions. As a result, many businesses may struggle to gain a consolidated view of their customers, leading to disconnected data and a suboptimal customer experience. 

An overall lack of quality data could also have had an impact on local adoption of Artificial Intelligence (AI) powered tools. According to HubSpot’s survey, nearly eight in ten (76%) of Singapore businesses felt they did not have enough data or the right data to make their AI usage effective. Even worse, about a third (34%) have not ‘started talking about generative AI at all’. 

Furthermore, nearly half of Singapore businesses participating in a HubSpot survey cited high costs (44%) as their number one challenge, with one in five (22%) saying it’s the biggest challenge they are facing.

The survey also found that intense competition (39%), rising costs of reaching prospects and customers (35%), and channel saturation (34%) are impacting the ability of Singapore businesses to effectively attract and retain customers, potentially limiting their growth potential. Inability to compete against their peers could create additional pressures on Singapore businesses.

“Needing to switch between more than 50 applications to manage customer interactions is not only detrimental to efficiency, but could also lead to inaccuracies as businesses try to align insights across disparate data sources. Having a single source of truth for customer data is essential to build and maintain meaningful customer relationships,” said Dan Bognar, vice president and managing director of JAPAC, HubSpot.

“Technology can give businesses a helping hand, however our findings show that data connectedness and a unified tech stack are presenting significant opportunities for local businesses looking to improve prospecting and customer retention," he added.

“Operating in the world’s most competitive economy is no easy feat, requiring a delicate balance between manginging increasing costs, while delivering an impactful customer experience. At HubSpot, we are committed towards equipping businesses with applications that are easy to use, fast to implement, and delivered on a unified platform. This helps to align marketing, sales, and service teams with a unified view of their customer," added Bognar. 

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