More Singapore investors rely on AI advice compared to the rest of the world

SINGAPORE: A new HSBC survey has found that investors in Singapore are embracing artificial intelligence for financial and investment-related activities at a higher rate than their global counterparts, while continuing to exercise caution when making major investment decisions.

HSBC said on Friday (July 10) that it had surveyed more than 600 investors in Singapore between January and February this year to better understand how AI is being used in personal finance and investing.

The findings showed that 76% of respondents in Singapore use artificial intelligence as part of their financial or investment activities, exceeding the global average of 73%.

The adoption of AI was also notably strong among older investors. According to the survey, 72% of Generation X and Baby Boomer investors in Singapore reported using AI in finance and investing. This was well above the global averages of 65% for Generation X and 59% for Baby Boomers.

Despite the widespread use of AI tools, the survey suggests that investors are treating the technology as a support rather than a substitute for their own judgement.

Respondents said they typically use AI to carry out research and analyse information before developing investment strategies. They then compare AI-generated insights with their own views and seek confirmation or professional advice from financial advisers before making decisions.

The findings also indicate that AI plays only a limited role in major investment decisions for most Singapore investors. Just 8% of respondents said artificial intelligence is the single biggest factor influencing their significant investment choices, compared with 12% of investors globally.

While AI appears to be encouraging some investors to become more comfortable with measured risk-taking, Singapore investors remain more conservative than the global average. The survey found that 43% of local respondents said AI had increased their willingness to take prudent investment risks, lower than the global figure of 49%.