Embracing AI in Financial Decision-Making: A Balanced Approach for Singaporeans

In today’s dynamic financial landscape, artificial intelligence (AI) has transitioned from a futuristic concept to an invaluable daily tool for managing finances and investments. Many Singaporeans are navigating this evolution by seeking a balanced approach that integrates professional financial expertise with innovative AI-centric ideas.

AI as a Complement, Not a Replacement

Despite ongoing concerns about AI potentially overshadowing human financial advisers, a growing number of Singaporeans view AI as a vital enhancement rather than a replacement. According to a recent survey conducted by MDRT, the majority of Singaporeans believe that AI enhances the quality of financial advice available, making the decision-making process both smarter and faster.

Preference for a Hybrid Approach

A striking 55% of respondents indicated a preference for working with financial advisers who utilize AI, emphasizing the need for a hybrid approach. This desire for a blend of digital tools and human insight reflects a confidence in using advanced technologies to support financial decisions, with 92% of current clients of advisers incorporating AI tools into their personal finance management.

Self-Directed Finance: A Distinct Segment

Interestingly, almost 40% of individuals who have never engaged a financial adviser do not utilize AI for managing their personal finances. This suggests that there is a segment of the population that favors a self-driven approach, relying on traditional methods rather than the assistance of technology or financial professionals.

AI’s Role in Administrative Functions

While Singaporeans largely welcome the integration of AI in finance, they show a clear inclination for AI systems to manage administrative tasks. Many prefer that AI handle general client communications (50%), automated assistance (47%), and marketing (47%), leaving the core advisory roles to human experts. Concerns regarding confidentiality remain a significant factor, as many respondents expressed discomfort about AI systems retaining their personal financial information.

Key Applications of AI Across Age Groups

The survey uncovered that across various age demographics, the most common applications of AI in finance include budgeting and monitoring expenses (50%), optimizing investment strategies through Robo-Advisors (47%), and receiving personalized financial advice (45%). These findings illustrate the versatility of AI tools and how they are reshaping financial practices in Singapore.

Expectations for Ethical AI Usage

As AI continues to gain traction in financial sectors, Singaporeans expect ethical and transparent usage of these technologies. Trust is a critical component in the financial advisory relationship, and the expectation for responsible AI application is paramount for ensuring that clients feel secure while employing AI tools.

Conclusion

The integration of AI in financial decision-making presents a transformative opportunity for both clients and advisers in Singapore. By embracing a balanced model that leverages AI for efficiency while maintaining human insight for guidance, Singaporeans can navigate their financial futures with confidence and clarity.

Methodology

The survey referenced in this article was conducted online between April 1 to 11, 2025, involving a representative sample of 2,000 Singaporean adults, balanced by age, race, and gender.

Learn More: AI Skills Insights

Main image and infographic courtesy of MDRT