4 in 5 Singapore E-commerce Firms Already Use AI
- By Paul Mah
- January 18, 2024
E-commerce stands at the cusp of mass AI adoption in Singapore, with 42% having fully implemented it and 38% experimenting, according to a new report by Salesforce.
According to the 2024 State of Commerce report, an additional 20% are evaluating if and how AI can fit into their operations. The report leveraged insights from 2,700 e-commerce practitioners across 15 countries, including 200 from Singapore.
Salesforce says Singapore has one of the world’s fast-growing e-commerce industries with a projected revenue growth of USD 3.5 billion in total between 2023 and 2028.
A deeper look at AI use
The report highlights key trends in AI adoption, payment types, global expansion efforts, and ecommerce functionality across customer touchpoints, along with insights on organizational plans for the adoption and implementation of artificial intelligence (AI).
According to the report, the most common AI use cases in commerce range from writing product descriptions, optimizing merchandising, and optimizing channel strategy. Sales forecasting and automating service communications are other common use cases.
AI adoption is nascent in commerce organizations – only 19% have fully implemented it in their workflows so far. However, the benefits to internal processes and productivity are notable among that group.
70% of respondents say poor data integration and harmonization is at least a moderate pain point on the road to AI implementation. Indeed, many firms lack a defined AI strategy or the skills to make the most of it.
Commerce is no longer limited to digital storefronts or mobile apps, but is increasingly embedded into other pre- and post-purchase customer touch points. Indeed, 56% of organizations in Singapore have payment capture functionality in marketing emails, and 95% see incremental revenue from customer service channels, according to Salesforce.
“AI is empowering the commerce industry in Singapore to add value at every touchpoint of the customer journey. This paves the way for a fresh wave of digital innovation that boosts productivity, customer engagement, and business growth,” said Sujith Abraham, senior vice president and general manager for Salesforce ASEAN.
“Still, successful AI implementation and usage relies critically on the quality of data and its management. Companies that can effectively leverage their data in a trusted manner for AI-powered innovations can create immersive, connected customer experiences that will strengthen relationships and build long-term brand loyalty.”
Image credit: iStockphoto/Andrey Suslov