singapore – Unfazed by recent market volatility, young investors in Singapore are increasingly turning to artificial intelligence tools such as ChatGPT and Perplexity Finance to analyze the market and refine their portfolios.
This trend comes amid continued market volatility, raising questions about whether AI-backed investments will hold up even if historical patterns break.
Analysts cautioned that this is because younger investors may not have the experience to interpret AI-generated insights during periods of heightened volatility.
The benchmark S&P 500, for example, was volatile in 2026, with flashpoints like the Greenland crisis and periodic AI-driven tech stock sell-offs causing stocks to plummet before recovering.
Although the index’s year-to-date level remains close to its start in the 6,800s, rapid changes in interest rate expectations, trade tensions, and sector rotation have resulted in sharp intra-week swings of 1% to 2%.
Such confusion complicates data-driven investing. Analysts warned that confident-sounding output could mask important nuances and risks.
“Advice presented in an easy-to-understand manner and expressed with strong conviction may not tell the whole picture,” said Nick Chan, Morningstar’s managing director and head of Greater China.
Despite the risks, it’s hard to resist the temptation of AI tools that offer a fast, easy, and low-cost way to navigate complex financial information.
“AI allows you to control what information you want to see based on prompts,” said Jadon Chin, a third-year student at Singapore Management University.
Chin’s portfolio consists of semiconductor stock Intel, metal stock Cameco, healthcare stock Hims & Hers, technology stock Coreweave, and cryptocurrency Ethereum.
Although he achieved a 29% return at the end of 2025, his portfolio suffered a 20% loss by the end of January due to a decline in technology stocks and a roughly 11% decline in Bitcoin.
This experience reinforced the need for risk management.
He said dollar-cost averaging is a key strategy, saying, “To reduce your losses, keep your positions small and buy in small amounts so you can add more when the market goes down.”
Ye Jia’En, a third-year student at Nanyang Technological University (NTU), uses ChatGPT as a starting point for her research. She started investing in September 2025 and currently invests in USD-denominated exchange traded funds (ETFs).
“Generative AI can serve as a launching pad to help young investors like me break down difficult concepts into easy-to-understand chunks and provide a basic overview of stocks that can be understood at a glance,” Ye said.
Her holdings include Invesco’s Nasdaq 100 ETF, Vanguard FTSE All World UCITS ETF USD Accumulation, and iShares Core S&P 500 UCITS ETF (USD) Accumulation.
Since she started investing, her portfolio has returned about 4%. 2025‘s stock price momentum will be partially offset by volatility in 2026.
Coupled with the accessibility of digital securities platforms, AI tools are increasingly gaining traction as an alternative to traditional financial advisors.
NTU fourth-year student Charn Yeh Zhu, who uses brokerage platform Tiger Brokers and sometimes uses AI to compare companies, said investing independently gives him “flexibility and control over his money.”
“If you invest through an FA (financial advisor), it can take a lot of time just to withdraw your funds, and in most cases there are penalties for withdrawals. You don’t want to be subject to such restrictions unnecessarily,” Chern added.
Since 2022, his portfolio, which includes Taiwan Semiconductor Manufacturing Company, Google, Microsoft and Nvidia, has returned 227 percent, largely due to the technology rally.
Industry observers have warned that easy access to markets without financial literacy could foster overconfidence, especially when amplified by AI tools.
“Without a clear strategy, some investors may end up following trends, overtrading, or taking risks that are inconsistent with their financial goals and time horizon,” said Nicholas Roe, financial advisory manager at Finance Alliance.
Market volatility can exacerbate these trends. Morningstar’s Chan said relying on AI models that use pattern recognition in historical data to pick stocks could be risky if “the patterns stop working.”
“AI is so good at making complex things simple that it can inadvertently reinforce bad decisions,” he added.
Some younger investors remain wary of using AI at all.
“Currently, I don’t believe that AI can analyze many considerations. Important information may not be quantifiable,” said Liew En Jie, a first-year student at the National University of Singapore, who has never used AI in investment activities.
Mr. Liu’s portfolio consists of ETFs such as the Vanguard S&P 500 ETF and the Vanguard Total Stock Market ETF, select “Magnificent 7” stocks, and aerospace and defense counters. Since January 2024, it has returned 48.3%.
He selects a wide range of ETFs for stable growth and easy diversification, and is attracted to aerospace and defense stocks amid rising global tensions and increased government spending in these sectors.
Some people prefer a hybrid approach.
NTU first-year student Ian Choi uses AI to summarize his company’s financial reports and model potential investment returns, but he still consults a financial advisor.
“I feel comfortable having an active portfolio because I have a financial advisor who can streamline stock selection and alleviate panic among individual investors,” Choi said.
He has both a dividend portfolio and a professionally managed portfolio.
The former focuses on DBS Bank’s Singapore stocks, real estate investment trusts and Singapore savings bonds, which have returned 27.5% since July 2022.
His portfolio leans towards Chinese growth funds, global technology and US multi-cap funds, with a return of 3.3% since November 2020.
Analysts say relying solely on AI is risky, but adding human insight can improve investment outcomes.
“While AI can widen access to information, increase the efficiency of information gathering and enhance decision-making, human financial advice remains critical in helping investors tailor their portfolios to their goals, risk appetite and life stage,” said Timothy Liu, head of investment at OCBC Bank.
“It is important to use AI wisely, rather than blindly, as part of a balanced and informed investment strategy.”
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