Singaporean businesses: importance of human touch for sustainable growth amidst rapid AI expansion

Nearly nine in 10 business leaders in Singapore are committed to maintaining human touch after recent technology movements and the rise of AI take over jobs, according to a new survey by HSBC.

The survey, which was conducted among 2,900 business leaders in eight markets, found that 89% consider human interaction an indispensable element of banking relationships.

In a podcast with The Business Times, Priya Kini, the Head of Commercial Banking at HSBC Singapore, said the survey results show that while Singaporean businesses are adapting to changes brought about by the acceleration of digital adoption, they continue to value the human element in driving sustainable business growth.

Kini cites an example where a client expressed dissatisfaction with a digital platform that did not meet his expectations. This highlights the importance of not only relying on technology, but also integrating human interaction to provide customers with an in-depth experience.

She also emphasizes the need to strive to find a balance between digital solutions and personalized service, as some customers still prefer human assistance in specific aspects of their banking activities.

According to HSBC, despite the preference for human interaction, business leaders also pay close attention to the implementation of new technologies. 83% of business executives are actively investigating the ways in which new technologies can improve employee competencies. Another 82% intend to retrain their current staff, and 81% are eager to invest in fresh talent in order to meet the challenges presented by technological innovation.

The survey results show that 34% of businesses look to human engagement for customized financial advice, and 35% of businesses value face-to-face interactions for discovering new business opportunities. In addition, 33% of them depend on face-to-face assistance when growing their companies abroad and recognizing and minimizing possible hazards.

Kini said recruitment will be smarter in 2024 and urged business leaders to consider how to embrace technology and digitalisation through training and upskilling their staff.