Singapore Retailers Accelerate AI Use, Consumers Wary of Agents
An Adyen survey shows 99% of merchants use AI, but 58% of consumers hesitate on autonomous AI for transactions due to fraud risks.
Retailers Embrace AI, Consumers Hold Back
Singaporean retailers are quickly integrating artificial intelligence (AI) into their operations, with nearly all (99%) merchants now using the technology in some form. This widespread adoption comes from an Adyen survey conducted between March and April 2026, which polled over 1,000 consumers and 300 senior retail employees in Singapore.
Despite this, consumers show caution, particularly towards autonomous AI agents. While 72% of consumers use AI-assisted shopping through platforms like Gemini and ChatGPT, 58% are reluctant to allow AI agents to conduct transactions on their behalf. This hesitation stems from concerns about cybersecurity risks and potential fraud.
Rising E-commerce Scams Fuel Consumer Doubt
Consumer wariness is partly driven by a rise in e-commerce scams. The Ministry of Home Affairs reported over 2,700 cases in 2021, resulting in approximately SGD 5.8 million (US$4.6 million) in financial losses.
More recently, the Singapore Police Force (SPF) noted that e-commerce scams increased by 19.3% from 3,240 cases in the first half of 2025 to 3,865 cases in the first half of 2026. These scams are now the top type in Singapore, with associated losses climbing 18.9% to SGD 8.3 million (US$6.51 million) in H1 2026, up from SGD 7 million (US$5.5 million) a year earlier.
Merchant Challenges and Enterprise AI Growth
Retailers face internal hurdles in deeper AI integration. The Adyen study found only 23% of omnichannel retailers had a unified data layer last year to feed real-time AI models, leaving 77% with fragmented data. Consumer intelligence emerged as the most cited business challenge for 31% of respondents, rising to 24% among large merchants.
Separately, a 2026 ServiceNow study shows enterprise adoption of AI agents in Singapore reached 51% this year, doubling from 22% in 2025. Singaporean organisations also allocated 15.4% of their IT budgets to AI in 2026, marking a 108% year-on-year spending increase.
The divergence between rapid AI adoption by Singaporean retailers and consumer hesitation presents a challenge for market expansion. Companies developing AI solutions for retail must prioritise robust cybersecurity and fraud prevention features to build consumer trust, particularly for agentic AI applications.
Retailers, in turn, need to invest in unified data infrastructure to maximise AI's potential and ensure consistent customer experiences. The rising enterprise investment in AI suggests a continued push for automation, but consumer-facing applications will require clear communication on security to overcome current skepticism and unlock broader market acceptance.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
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