A recent study by HubSpot reveals that a significant majority of businesses in Singapore are facing challenges with data quality and technological integration, hindering their effective use of artificial intelligence (AI). According to the findings, nearly 76% of companies reported that they lack sufficient or appropriate data to leverage AI effectively, while about a third (34%) have yet to engage in discussions about generative AI.
The survey underscores the difficulties many Singaporean companies encounter, particularly with insufficient quality data and fragmented technology stacks, even as competition intensifies and operational costs rise. While businesses recognize technology as a vital tool for enhancing competitiveness, barriers related to data quality and modern tech infrastructure remain prevalent.
The report highlights that only 43% of businesses believe their data and systems are effectively interconnected, resulting in a fragmented understanding of their customers. This disconnection complicates customer interactions, with many organizations needing to navigate over 50 different applications to manage these engagements. Consequently, this lack of a unified view leads to disjointed data and an unsatisfactory customer experience.
The overall deficit in quality data has adversely impacted the local adoption of AI-powered tools. Nearly eight in ten businesses surveyed by HubSpot feel unprepared to implement AI effectively due to data inadequacies. Furthermore, the study reveals that about one-third of respondents have not yet initiated conversations regarding generative AI, suggesting a significant knowledge gap.
Cost concerns are also a major obstacle, with 44% of businesses citing high expenses as their primary challenge, and 22% labeling it their biggest hurdle. Additional factors hindering customer attraction and retention include intense competition (39%), escalating costs associated with reaching prospects and customers (35%), and channel saturation (34%).
Dan Bognar, Vice President and Managing Director of HubSpot JAPAC, emphasized the detrimental effects of relying on numerous applications for customer interactions. He stated, “Switching between more than 50 applications not only hampers efficiency but also risks inaccuracies as businesses attempt to synchronize insights from various data sources. Establishing a single source of truth for customer data is crucial for cultivating and sustaining meaningful customer relationships.”
Bognar noted that while technology has the potential to aid businesses, the challenges of data connectivity and a unified tech stack present significant opportunities for improvement in customer prospecting and retention strategies.
“Operating within the world’s most competitive economy demands a careful balance of managing rising costs while delivering an impactful customer experience,” he added. “At HubSpot, we are dedicated to providing businesses with user-friendly applications that are quick to implement, all within a unified platform. This approach aligns marketing, sales, and service teams with a cohesive understanding of their customers.”
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