Twilio: Consumers in Singapore Still Feel Misunderstood by Brands Despite Wider AI Adoption

Twilio, the customer engagement platform that drives real-time, personalised experiences for leading brands, has released its sixth annual State of Customer Engagement Report. Based on a global survey of more than 7,600 consumers and 600+ business leaders across 18 countries, including Singapore, the report reveals a clear disconnect: While Artificial Intelligence (AI) drives measurable returns, customer perception has not caught up. A stubborn gap persists between what brands believe they are delivering and what customers experience.

Singapore Brands are Personalising Customer Experience with AI, but Customers Are Not Convinced 

Twilio’s State of Customer Engagement Report highlights a significant uptick in AI adoption to create and enhance personalised customer experiences. Since 2024, more businesses in Singapore are using AI to analyse customer data for deeper insights into their needs and pain points (up to 94% from 66%), ensure branding and content consistency across channels (up to 77% from 67%) as well as maintain customer data security, privacy and compliance (up to 77% from 72%). These efforts are translating into tangible business outcomes, with brands reporting higher customer spending (37%) and saving both time (37%) and costs (30%).

However, these gains are not yet leading to increased customer satisfaction. While 90% of local organisations rate their customer engagement as “good” and “excellent,” only 57% of Singapore customers agree. This demonstrates a widening gulf between brands and customers, where the gap grew to 33%, up from 20% in 2024. Furthermore, only 33% feel that brands personalise customer engagement often—below the regional average of 41%.

This disconnect has real consequences. More than a third (38%) of consumers say they may stop using a brand, and 70% will abandon purchases if engagements feel impersonal.

On the flip side, an overwhelming 94% of Singapore consumers are more likely to make purchases when engagements are personalised in real time, highlighting a major opportunity for brands to close the gap between automation and actual customer experience and conversion.

“Singapore businesses are investing in AI for customer engagement, and are already seeing strong operational returns. The next step is ensuring customers feel the benefits too,” said Robert Woolfrey, Vice President, APJ, Communications, at Twilio. “Right now, there’s a gap between what brands are investing and what consumers are experiencing. When brands take a more deliberate and transparent approach to using data and focus on delivering individualised experiences that feel human and relevant, they will be better positioned to build deeper, more meaningful relationships with their customers. That’s what earns loyalty, strengthens the brand and drives long-term growth.”

AI Alone Is Not Enough, Singaporeans Still Expect a Human Fallback 

Although AI acceptance is growing, customers still value human involvement and control in their brand interactions. Three in four (75%) of Singapore consumers say it is important that AI-powered brand interactions feel human-like, and half (50%) still prefer to speak to a person if AI fails to resolve their issue effectively.

Transparency also matters. More than half (52%) of consumers want to know when they are communicating with AI, underscoring the need for brands to implement safeguards around visibility and control. Additionally, the majority (86%) of Singapore consumers want to choose how brands communicate with them, rather than having AI agents automatically assume their preferences. This reflects a strong desire to retain control and autonomy over their brand interactions.

The Future of Customer Engagement: Individualisation

In a world where customer loyalty is harder to win—and easier to lose—businesses can no longer afford to treat trust and personalisation as optional. The 2025 State of Customer Engagement Report shows that basic personalisation no longer cuts it. The future of customer engagement lies in individualisation, built on customer interactions that are relevant, timely, tailored and trustworthy. Brands that invest in transparent, data-driven and AI-powered engagement strategies, fundamentally anchored in customer understanding, will be best placed to earn trust, deepen relationships and stand out in an increasingly competitive marketplace.

The full 2025 State of Customer Engagement Report is available here.