Gen Z in Singapore: AI’s Impact on Jobs and Finance

As Singapore’s economy surges forward with a projected GDP growth of 2.5% in 2025, driven significantly by its digital economy contributing 17.7% to GDP, Generation Z (Gen Z) faces a unique challenge: navigating an AI-driven job market that both threatens and enhances their career prospects. A 2025 Randstad Singapore survey reveals that 49% of Gen Z workers anticipate significant AI impact on their jobs within five years, yet only 4% expect outright job loss. This juxtaposition of concern and confidence underscores a critical need for financial literacy tailored to an AI-disrupted landscape. With Singapore’s median monthly household income at SGD 10,869 in 2024, and a high cost of living reflected in a 3.2% inflation rate, Gen Z must strategically manage their finances to secure their future amidst rapid technological change. This article explores how financial literacy and career adaptability are essential for Singapore’s Gen Z to thrive in an AI-driven economy, emphasizing proactive strategies to ensure financial resilience.

Singapore’s ambition to be a global AI hub is evident in its National AI Strategy 2.0, which has spurred the creation of over 900 AI startups by 2025 and a projected AI market size of USD 4.64 billion. This technological leap is reshaping the job market, particularly for entry-level roles critical to Gen Z. In sectors like banking, technology, and creative industries, AI is automating tasks such as data entry, basic coding, and even creative design, reducing demand for traditional entry-level positions. A 2025 Deloitte survey indicates that 72% of Gen Z workers express concern about job displacement, particularly in roles with structured, rule-based tasks, which are increasingly handled by AI tools like generative models.

Financial literacy is paramount for Singapore’s Gen Z as they navigate the uncertainties of an AI-driven job market. With the median monthly income for fresh graduates at SGD 4,200 in 2024, and living costs rising—HDB resale prices increased by 6.8% year-on-year—effective budgeting and saving are critical. AI-powered financial tools, such as robo-advisors and budgeting apps, are transforming personal finance management, offering personalized savings plans and investment advice. For instance, platforms like StashAway use machine learning to tailor portfolios, enabling young Singaporeans to invest with as little as SGD 1,000, a significant shift from traditional high-entry investment models.

Gen Z’s response to AI’s impact on jobs is marked by proactive adaptation. A 2025 Deloitte survey notes that 63% of Gen Z use generative AI daily to enhance work quality, from coding to creative tasks. For example, young professionals like Ryan Ong, a 26-year-old test engineer, use AI to learn programming languages like Perl, significantly reducing learning curves. Educational institutions are supporting this shift, with the National University of Singapore (NUS) and Singapore Management University (SMU) integrating AI into curricula, allowing students to use AI tools in assessments to build practical skills. In 2024, NUS reported that 80% of its students engaged with AI tools for academic projects, reflecting a generational shift toward tech fluency.

The AI-driven job market is reshaping Gen Z’s financial behaviors, particularly in saving and investment. With job security concerns, 58% of Gen Z prioritize emergency savings, allocating an average of 20% of their income to savings accounts, according to a 2024 OCBC Financial Wellness Index. The Central Provident Fund (CPF) remains a cornerstone, with mandatory contributions at 20% for employees and 17% for employers for those earning above SGD 750 monthly. However, the gig economy’s rise, driven by AI platforms like Grab, sees 15% of Gen Z engaging in freelance work, which often lacks CPF contributions, necessitating alternative savings strategies.

The trajectory of Singapore’s AI-driven economy suggests both challenges and opportunities for Gen Z’s financial well-being. By 2030, the AI market is projected to reach USD 6 billion, with Singapore’s digital economy potentially contributing 20% to GDP. This growth will likely create high-demand roles in AI development and ethics, but it may also widen the skills gap if upskilling efforts lag. Gen Z’s proactive adoption of AI tools and focus on lifelong learning position them to capitalize on these opportunities, provided they continue to prioritize financial literacy and adaptability.