{"id":161,"date":"2025-05-08T06:11:00","date_gmt":"2025-05-08T06:11:00","guid":{"rendered":"https:\/\/www.salesforce.com\/?post_type=sf_press_release&p=161"},"modified":"2025-09-24T13:55:27","modified_gmt":"2025-09-24T05:55:27","slug":"69-of-retailers-in-singapore-view-ai-agents-as-essential-to-beating-competition-amid-rising-costs","status":"publish","type":"sf_press_release","link":"https:\/\/www.salesforce.com\/ap\/news\/press-releases\/2025\/05\/08\/69-of-retailers-in-singapore-view-ai-agents-as-essential-to-beating-competition-amid-rising-costs\/","title":{"rendered":"69% of Retailers in Singapore View AI Agents as Essential to Beating Competition Amid Rising Costs"},"content":{"rendered":"\n

As profit margins shrink, 85% of retailers in Singapore plan to increase AI investments this year<\/em><\/p>\n\n\n\n

SINGAPORE \u2013 May 8, 2025 \u2014<\/strong> Retailers are feeling pressure as costs mount, customer expectations rise, and technology gets increasingly complex, according to a new report from Salesforce. At the same time, AI agents<\/a>, a type of artificial intelligence (AI)<\/a> that can autonomously take action across business systems, offer a path forward. In fact, three out of four retailers (69%) in Singapore believe AI agents will be vital for beating the competition within a year.<\/p>\n\n\n\n

Salesforce\u2019s sixth Connected Shoppers Report<\/em>, based on dual surveys of 8,350 shoppers and 1,700 retail industry decision-makers \u2013 including 500 shoppers and 100 decision-makers from Singapore \u2013underscores the increasing importance of agentic AI<\/a> in the retail sector. The report also highlights how retailers can navigate changing consumer preferences amid increasing fragmentation.<\/p>\n\n\n\n

Retailers face pressure from all sides<\/strong><\/p>\n\n\n\n

Rising customer acquisition costs are squeezing retailers’ margins as they also navigate inflation, competition, and consumers\u2019 evolving behaviors and preferences. <\/p>\n\n\n\n

Additionally, the increasing complexity of the shopper journey due to shifting behaviour patterns is adding another layer of pressure. While physical stores remain vital, their purchase share is declining in Singapore \u2014 from 43% in 2024 to a projected 38% by 2026. Digital spending is fragmenting across a constellation of marketplaces, retailer websites, brand sites, and delivery apps, rather than consolidating into a single channel.<\/p>\n\n\n\n

To efficiently serve customers across vast and expanding touchpoints, retailers\u2019 top strategies are to improve the productivity of their store associates, improve the quality of customer service, and implement unified commerce \u2013 <\/a>a concept Salesforce champions as a way to drive revenue without adding operational costs.<\/p>\n\n\n\n

Retailers see AI agents as a way forward<\/strong><\/p>\n\n\n\n

Retailers are deepening their commitment to AI, with 85% of retailers in Singapore saying they’re increasing investment over the next year. As adoption continues, marketing emerges as retail\u2019s top agent use case. Here, agents can dynamically segment audiences, tailor messaging, and trigger campaigns based on real-time customer behavior\u2014offloading repetitive tasks so marketers can focus on creativity, strategy, and driving impact across channels\u200b\u200b\u200b. <\/p>\n\n\n\n

Velia Carboni<\/strong>, CIO of Salesforce customer SharkNinja<\/strong>, described<\/a> Agentforce, the agentic layer of the Salesforce Platform, as \u201ckey to helping us build a community that keeps consumers coming back.\u201d<\/p>\n\n\n\n

Beyond customer service, retailers anticipate agents to extend across many other tasks and departments \u2014 from optimising websites and marketing campaigns to training store associates and managing inventory.<\/p>\n\n\n\n

Unified commerce boosts AI capabilities<\/strong><\/p>\n\n\n\n

AI agents need access to data across retail systems to work effectively. With better, more unified data, agents can provide more personalised and real-time responses. However, many retailers\u2019 systems are disconnected, creating challenges for employees and shoppers alike.<\/p>\n\n\n\n