IMAGE: Comexposium
Mention “baby boomer” and “OK boomer” jokes may surface. But retailers that have paid attention to this demographic in APAC might have the last laugh. Why? According to Adyen’s 2025 Annual Retail Report, over a third (38 per cent) of APAC consumers now use AI to shop, marking a 39 per cent increase from last year.
And in Singapore, AI adoption is growing across generational groups, with older shoppers, aka baby boomers, catching on. 30 percent of those aged 60 and above using AI to assist with purchases. Generation X (ages 44-59) and millennials (ages 28-43) record the largest increases in usage, at 45 per cent and 28 per cent respectively.
The findings suggest that AI tools are bridging generational divides.
How AI is changing consumer habits
Indeed, Adyen found that AI is proving to be a valuable tool for consumers, with 63 per cent of APAC shoppers saying it inspires their purchase decisions, from outfits to meals. Additionally, 62 per cent use AI to discover unique brands and shopping experiences, highlighting opportunities for retailers to leverage partnerships and cross-selling strategies.
Warren Hayashi, president for APAC at Adyen, emphasised that AI is transforming shopper journeys by offering personalisation and convenience. “For retailers, embracing AI isn’t just about staying current, it’s about meeting evolving consumer expectations and staying competitive in a fast-changing retail landscape,” he said.
When asked if this meant shoppers are spending more, or merely switching to a different way of shopping, Hayashi said that there is an increasing preference for new ways of shopping, including AI. “The study indicates that AI has enhanced consumers’ shopping experience in ways such as inspiring purchase decisions and driving the discovery of new brands,” he added.
IMAGE: Adyen
This suggests that AI’s advanced search and recommendation capabilities are expanding shopping possibilities and, through more personalised suggestions, may be influencing greater intent to spend.
At the same time, retailers are not waiting. More than a third (34 per cent) of APAC retailers plan to increase AI investments in the next 12 months, focusing on areas like sales, marketing, product innovation, and fraud prevention.
Bridging online and offline experiences
Beyond AI, unified commerce remains a critical area for improvement. Less than half (46 per cent) of APAC retailers currently offer seamless shopping across online and offline channels, despite 46 per cent of consumers expecting this capability.
In Singapore, shoppers still value physical stores, with 35 per cent preferring brick-and-mortar shopping over online platforms. Consumers appreciate the ability to see and feel products (48 per cent), try items on (41 per cent), and enjoy immediate access to purchases (35 per cent).
With AI, shoppers now have access to new possibilities in shopping and now look for personalised offers, real-time stock updates, seamless returns, and the ability to shop across platforms – all of which rely on smart technology.
Retailers which have built an omnichannel shopping experience that meets these expectations will benefit by unifying these experiences. AI will help them deliver on the personalisation and convenience that consumers increasingly demand.
“What’s important for retailers is to understand what their customers truly value, and whether technologies like AI align with those expectations,” said Hayashi. Case in point: Baby boomers (65 per cent) are most likely to abandon a slow checkout in Singapore – despite the hyper-connectivity younger consumers demand today.
Navigating challenges: Security and trust
The rise of AI isn’t without hurdles. While 40 per cent of APAC retailers are already using AI to combat fraud, concerns about safety remain prominent.
About 26 per cent of consumers worry about scams, and one in five avoids enabling devices to save payment details. Retailers must prioritise robust security measures to build and maintain trust.
While Adyen does not currently use blockchain technology, it agrees that security and trust must remain its top priorities. “As a licensed financial institution in the various jurisdictions it operates in, Adyen’s approach to security is comprehensive, integrating robust technical measures, proactive risk management, and a security-first culture across its operations,” Hayashi explained.
The way forward
As AI adoption accelerates, APAC retailers must balance innovation with consumer preferences. Investments in AI-powered tools can help drive revenue while ensuring secure transactions. At the same time, enhancing omnichannel strategies will allow businesses to meet the expectations of today’s digitally savvy yet traditional shoppers.
The future of retail in Singapore and APAC lies in harnessing AI’s potential while maintaining the human touch that consumers still value. Retailers that adapt to these trends will be well-positioned to thrive in the evolving marketplace.
