Adyen’s Retail Report 2025 reveals that 49% of Singapore consumers have used artificial intelligence (AI) assistants, such as ChatGPT, to enhance their shopping experience. They leverage AI to quickly generate outfit or meal inspiration (67%) and discover unique brands (66%). Nearly two-thirds (59%) are also open to direct purchases via AI interfaces.

Some Singaporean consumers also see technology as integral to shopping. They are keen on AI-powered visual or voice search (22%), augmented reality for product preview in a space (18%), and metaverse or virtual reality shopping (15%).

“The introduction of AI in shopping has created new shopper journeys that are more exciting than ever. From it, we see an emergence of new consumer behaviours characterised by personalisation and convenience. For retailers, embracing AI isn’t just about staying current; it’s about meeting evolving consumer expectations and staying competitive in a fast-changing retail landscape,” says Warren Hayashi, president for Asia Pacific at Adyen.

Despite expecting AI to aid shopping, 32% of Singaporean worry about fraud risks. As such, they are conservative when adopting digital payment methods (24%), such as Buy Now, Pay Later, and prefer to shop in physical stores to avoid online fraud (28%).

The good news is that many companies are adopting AI for fraud detection and prevention, especially as fraud continues to be a significant cost. More than a third of businesses in Singapore plan to invest in AI-driven fraud prevention tools in the coming year.

While security remains important, the report emphasises seamlessness in the shopping experience. Nearly a quarter (23%) of Singaporeans appreciate identity checks at checkout, valuing fraud protection only when it does not disrupt their experience.

“Besides optimising revenue, AI could aid in the fraud-fighting efforts of retailers. By training AI on the thousands of transaction data retailers process each day, it can spot anomalies, identify patterns, and predict fraud attempts – ultimately ensuring consumer trust and protecting retailers’ hard-earned revenue,” says Hayashi.