AI tools reshape how Singapore retail investors approach markets

Nearly one in three retail investors in Singapore are now using artificial intelligence (AI) tools to make or adjust investment decisions, according to new research from trading and investing platform eToro.

The latest findings, drawn from a survey of 11,000 retail investors across 13 countries and including 1,000 participants from Singapore, show that 32% of Singaporean retail investors are already adopting AI technology in their investment processes. This figure stands significantly higher than the 19% recorded among retail investors globally.

AI adoption

The data also indicates that an additional 43% of retail investors in Singapore are open to utilising AI in the future. Worldwide, 39% of retail investors expressed openness to trying AI tools for investing, while 33% remain unwilling to use them, compared with only 20% in Singapore.

Singapore retail investors cited time-saving as a key advantage, with 56% indicating that saving time on research is a principal rationale for letting AI manage aspects of their investments. Other commonly cited reasons include a belief that AI is the future of investing (51%), that it can make better decisions than the investor themselves (33%), and that it could outperform traditional fund managers (32%). Cost was another factor, with 32% considering AI to be more affordable compared to engaging a fund manager.

"Singapore has one of the highest internet and smartphone penetration rates globally, so it comes as no surprise that the city has some of the most tech-savvy investors in the world. As people here are already surrounded by technology in their daily lives, bringing AI into their portfolio feels like a natural step. For Singaporeans, efficiency is everything, which is why most respondents who use AI for investing do it because it saves time," said Zavier Wong, Market Analyst at eToro.

Gender differences

The research also highlights a gender disparity in attitudes towards AI-driven investment. Female retail investors in Singapore are more likely to regard AI as the future of investing (56%) compared to their male counterparts (46%). Both men and women in Singapore broadly agree on the time-saving benefits, with 57% of women and 54% of men endorsing this reason.

Learning more about AI investment strategies

Despite the recognition of AI's efficiency, Singaporean investors do not appear complacent about ongoing education. The survey reveals that more than one third (39%) of Singaporean retail investors plan to deepen their knowledge of AI-powered investment strategies in the coming 12 months, surpassing the global average of 23%.

Details from the survey suggest a continued appetite for education and experimentation among Singapore's investing public, with 32% already using AI tools, 43% open to trying them, and only 20% reporting resistance to the technology.

Investment focus on technology

In terms of sector allocation, the report found that 59% of Singaporean retail investors currently hold positions in the technology sector. Furthermore, 27% of those surveyed indicated they are most likely to increase their investments in technology over the next three months.

This preference for technology is not confined to any one generation; every age group among Singaporean retail investors expressed an increased inclination to invest within the sector.

"What's interesting is how widespread enthusiasm for tech has become. Usually, we'd expect older investors to be more cautious, but here in Singapore, we see that same group of investors doubling down on technology. This shows how confidence in AI's growth potential has spread across all age and experience bands. Just as tech has become part of our day-to-day lives, it's also become a portfolio staple for many local investors," added Wong.

Sentiment towards AI stocks remains bullish among Singaporeans, with 64% expecting AI stock prices to rise over the year. One notable example is Nvidia, where 27% of Singaporean respondents have increased, or intend to increase, their investment in the company, whose technology is seen as integral to advancements in AI.

The findings indicate that Singapore's retail investors are not only leading globally in their use and acceptance of AI-driven investment tools but are also looking ahead to continue engaging with and investing in technology and AI-related opportunities.