Singaporeans Embrace AI in Finance, Demand More Oversight

Singaporeans Open to AI in Personal Finance, But Call for Regulation and Transparency

In recent years, Singapore has emerged as a leader in embracing cutting-edge technologies, including artificial intelligence (AI), in various sectors. A recent survey by the Million Dollar Round Table (MDRT) highlights an interesting trend: Singaporeans are increasingly open to using AI in managing their personal finances, but they also call for stricter regulation and greater transparency in AI-powered financial services. This shift reflects not only the growing comfort with AI but also a deeper understanding of its potential benefits and risks.

AI Adoption in Personal Finance

The MDRT survey, conducted between April 1 and April 11, 2025, reveals that a significant majority of Singaporeans—81%—are already using AI tools to manage their finances. The most common applications include budgeting and expense tracking (50%), automating and optimizing investment strategies through robo-advisors (47%), and receiving personalized financial advice (45%) [1]. This adoption is particularly pronounced among younger generations, with Gen Z and millennials leading the way. For instance, 87% of Gen Z and 86% of millennials are using AI in their financial decision-making, while baby boomers remain more cautious, with only 37% utilizing AI tools [1].

Generational Differences

The generational divide in AI adoption highlights interesting dynamics. Younger, tech-savvy consumers find AI tools more intuitive and accessible, which has accelerated their adoption and built greater trust in AI-powered financial services. As Gregory Fok, a 19-year MDRT member, noted, "For younger, tech-savvy consumers especially, using AI tools feels more intuitive and accessible, which has helped accelerate adoption and build greater trust in AI-powered financial services" [1]. In contrast, older generations, while not entirely opposed to AI, tend to approach it with more caution, reflecting a need for targeted education and support.

Financial Literacy and Insurance

Despite the enthusiasm for AI, another MDRT survey conducted earlier in 2025 found that only about half of Singaporeans perceive their financial literacy as "good" or "excellent" [2]. This gap in financial knowledge can lead to under-insurance, particularly among younger generations who face financial pressures like purchasing their first home or starting a family [2]. Experts recommend allocating budgets towards building a diverse financial portfolio to ensure holistic protection against unforeseen situations [2].

Regulation and Transparency

As AI becomes more integral to financial services, Singaporeans are increasingly calling for regulation and transparency. Nearly three in four (72%) agree that financial advisors should be allowed to use AI, but there is a caveat: they want these advisors to be transparent about how AI is used [1]. This underscores the critical role of financial advisors in guiding and ensuring responsible AI integration. The Singaporean government's efforts to strengthen AI capabilities have boosted public confidence, but there remains a need for regulatory frameworks that balance innovation with consumer protection [1].

Historical Context and Future Implications

Historically, Singapore has been proactive in embracing technological advancements, including AI. The government's initiatives to strengthen the AI ecosystem have played a significant role in fostering this environment. Looking ahead, the integration of AI in finance is likely to continue, with potential benefits including enhanced efficiency, personalized services, and better risk management. However, addressing the need for regulation and transparency will be crucial to maintaining public trust and ensuring that AI benefits all segments of society.

Conclusion

In conclusion, Singapore's embrace of AI in personal finance reflects a broader trend of technological adoption in the financial sector. While there is enthusiasm for AI's potential, there is also a clear demand for regulation and transparency to safeguard consumer interests. As AI continues to evolve, it will be important for policymakers and industry leaders to strike a balance between innovation and protection, ensuring that these technologies serve the public good.

EXCERPT:
Singaporeans are embracing AI in personal finance, but they also demand regulation and transparency in AI-powered services.

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• artificial-intelligence
• financial-literacy
• transparency

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