A new report from Visa has revealed why generative AI is booming in Singapore and how consumers are using the tech.
In its Visa Consumer Payment Attitudes Study, Visa found that consumers are becoming increasingly aware of the potential of generative AI (gen AI). This was especially the case for Gen Z consumers, those aged 18-23 years old. Eighty-four per cent are aware of gen AI and its potential applications. This was almost 10 per cent higher than all Singaporeans surveyed (76 per cent) who are aware of this technology.
Furthermore, over eight in 10 Gen Z consumers are aware of the benefits and potential of gen AI in banking. This is also higher than the total surveyed population in Singapore (69 per cent).
Singapore consumers across all age groups have indicated strong enthusiasm for gen AI, with close to 60 per cent being interested in trying gen AI for banking services. Leveraging AI for fraud detection (68 per cent) and answering enquiries on banking products and solutions (61 per cent) were cited as desired applications by consumers from a banking perspective.
In addition, more than a third of Singapore consumers who were interested in using gen AI for banking believe that the top three reasons for using gen AI include reducing risk of fraudulent transactions, cutting down the processing time for banking transactions and having their banking enquiries addressed quickly and efficiently.
Use outside of banking
There is also high interest by Singapore consumers to use gen AI for money management. Close to seven in 10 consumers were interested most in using this technology to plan for retirement, pay their bills on time and track and analyse their spending.
The retail sector is also seeing a transformative impact that gen AI will provide and consumers are already adopting AI-powered shopping tools to find products tailored to their needs. Some 25 per cent of consumers surveyed in Singapore have already used gen AI for online shopping; and Gen Z are leading the way at 43 per cent.
Findings also showed that half of Singapore consumers are interested in using an AI personal shopper, especially for personalised recommendations (49 per cent) and finding merchants that are offering better prices and promotions (45 per cent). Gen Z segment and the affluent segments are most interested in using this service at 62 per cent and 54 per cent respectively. Categories that they are most interested to use this personal shopper service include home appliances, personal electronics and fashion.
Generative AI’s potential
Adeline Kim, country manager for Singapore and Brunei, Visa
“There is immense potential in generative AI, where it is predicted that gen AI brings $320billion worth of value to the banking industry. And that is also why we introduced a $100million generative AI ventures initiative globally to support the next generation of companies focused on using this technology to impact the future of commerce and payments,” said Adeline Kim, Visa country manager for Singapore and Brunei.
“We also believe there are interesting use cases in banking that could emerge which includes using gen AI to create more efficient and automated customer service and drive hyper-personalised content and product customisation to serve customers. Combating fraud leveraging gen AI is also another great example. We introduced the Visa Account Attack Intelligence score this year, which uses gen AI components to identify and score enumeration attacks.
“For a long time, AI has been used by financial institutions to create some of these services for consumers, but generative AI will further refine and make these customisations more precise due to enhanced machine learning capabilities.
“As generative AI continues to reshape industries, Visa remains dedicated to integrating these technologies into our ecosystem, fortifying our payment networks, unlocking new opportunities, and empowering businesses and consumers to thrive in the digital age.”
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