Vodafone: AI can help boost customer trust

More than half (51%) of businesses in the Asia-Pacific region (APAC) surveyed in a Vodafone Business study have adopted generative AI, exceeding the global average of 45%. Singapore tops global generative AI adoption, with 59% of businesses surveyed reporting use.

The study, developed in partnership with the London School of Economics - which includes more than 760 business and 1,760 customer respondents across Singapore, China, India and Australia - also shows that more businesses in APAC are increasing their investments in technology despite the macroeconomic environment. 

More than two-thirds (70%) of APAC companies report that budgets for digital transformation have risen this year, up from 60% in 2023. However, despite the increased investment in technology, 65% of businesses in the region are concerned that the rise of emerging technologies like AI could potentially erode customer confidence, with the top reason being customer’s privacy concerns around personal data (57%).

Contrary to these concerns, the new Vodafone Business study suggests that AI can help bolster customer trust through a 9% uplift in customer trust scores. This is due to strong underlying trust in businesses’ use of AI in the region:

- Over six in 10 customers in APAC trust organisations the same or even more when gen AI is used.
More customers in China (35%) and India (29%) say that the use of gen AI will increase their trust in an organisation, compared to customers in both Singapore (23%) and Australia (19%).

- Nearly four in 10 (39%) APAC customers say that the use of gen AI would make them trust an organisation less.

While new technologies like AI have the potential to increase customer trust, the study also reveals a gap in how much customers agree that technology is being used in a way that adds value to them or safeguards their interests:

- While 85% of APAC businesses believe their use of technology adds value to customer interactions, only 67% of customers in the region share this view. 

- In Singapore, less than half of customers (45%) feel that companies use technology in a way that inspires trust and confidence, with an even lower percentage in Australia (34%). In contrast, the majority of customers in China (71%) and India (74%) demonstrate higher levels of trust and confidence in the way businesses use technology. 

- Lower levels of customer trust in businesses’ implementation of robust data privacy and security policies are also seen in Australia (62%) and Singapore (65%), compared to China (82%) and India (79%).

Bhupinder Singh, President of Vodafone Business, Asia-Pacific and Middle East, said: “As businesses in the APAC region rapidly embrace AI and other emerging technologies, the key to long-term success lies in building and maintaining customer trust. To bridge this gap, businesses must use technology in a human way and prioritise transparency, fairness, and robust data protection measures. 

“It's also essential for businesses to invest in robust digital infrastructure, advanced networks, and comprehensive security solutions. These foundational elements will support the seamless adoption of emerging technologies, ensuring that businesses are well-prepared and Fit for the Future.”

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Read Vodafone’s global Fit for the Future report at https://www.vodafone.com/business/the-trust-gap

*In 2020, Vodafone Business set out to discover which businesses are prepared for the future, what they’re doing differently to other businesses, how they approach different challenges and how they fared during the pandemic. The company conducted qualitative and quantitative research across 10 markets globally in 2019 and 2020. 

Six characteristics correlated most clearly with these businesses, which Vodafone Business called Fit for the Future (FFTF). FFTF businesses are more confident in their ability to use technology, quicker to respond to upcoming trends and faster to market than their competitors, and this includes monitoring their carbon footprint. 

FFTF businesses continue to be tracked to see how they fare to potential issues or scenarios compared to those who may not be as prepared.

In the 2021 report, Vodafone partnered with the London School of Economics to understand whether being Fit for the Future affected company performance. The report revealed a close correlation between being Fit for the Future and commercial performance. 

Even after controlling for factors such as company size, location and sector, financial performance relative to competitors is greater when firms score higher in terms of their Fit for Future score. Similarly, being Fit for the Future is associated with higher environment, sustainability, and governance (ESG) scores.

The quantitative research for 2024 was conducted by B2B International in collaboration with the London School of Economics, commissioned by Vodafone Business. The study surveyed 2,359 businesses and 5,289 individual customers across 10 markets and 11 key sectors of the economy.

To create Trust scores for businesses and industries, the study asked research participants to give organisations a rating on a 1 – 5 scale, according to how much they agreed or disagreed with four statements within each of the three pillars within a definition of Trust. Businesses were asked to give themselves a score on these measures, according to how they thought customers would rank them.