Artificial intelligence (AI) is transforming how Singaporeans shop, especially as the holiday season approaches, according to a recent survey by Riskified, a leader in ecommerce fraud prevention. The survey found that 46% of Singaporean shoppers use AI to discover products or summarise reviews, whilst 42% use it to compare prices. However, only 10% are comfortable allowing AI to make purchases directly, indicating a significant trust barrier.
The survey highlights that payment security and privacy are the primary concerns for 32% and 21% of shoppers, respectively. Despite these concerns, 53% of respondents are likely to use AI for gift shopping, and 64% are comfortable with AI checking order statuses. However, for more complex tasks like returns and billing disputes, human intervention is still preferred.
As AI adoption increases, merchants face both opportunities and challenges. The rise of agentic commerce—where AI assists in shopping—presents risks such as payment fraud and policy abuse. Jeff Otto, Chief Marketing Officer at Riskified, noted, “AI shopping agents may make buying easier for consumers, but they also blur the lines of accountability for fraud and policy abuse.”
The findings suggest that Singapore’s cautious yet early adoption of AI could lead to the first AI-assisted holiday shopping season. Merchants are encouraged to educate their leadership on these new risks and advocate for data transparency to manage the evolving landscape effectively. As AI continues to influence consumer behaviour, businesses must adapt to ensure both growth and security in this new era of shopping.
