Artificial Intelligence (AI) as a Moderating Variable in the Relationship Between Financial Inclusion, Digital Adoption, and Financial Literacy in Developing Economies

^1,3 Research Scholar, Department of Management Studies, Visvesvaraya Technological University, Belagavi.
² Associate Professor, Department of Management Studies, Visvesvaraya Technological University, Belagavi.

^* Corresponding author: aishlaxmi007@gmail.com

Abstract

This Research study has explored in an analytical how Artificial Intelligence (AI)acts as a mediating variable in the connection between digital literacy, digital adoption, and financial inclusion in developing economies. Building on prior research, which highlights the crucial part of digital financial literacy in making progress financial inclusion, this study introduces AI-driven Fintech tools as a key enabler. The findings suggest that AI enhances financial decision-making for underserved populations by simplifying complex financial tasks and bridging financial literacy gaps. This, in turn, promotes wider adoption of digital financial services, mainly in between people who has less financial knowledge. Using a sample size of 350 participants from developing economies, the study provides evidence that AI strengthens the effect of internet financial in a positive way and digital adoption on financial inclusion. The study contributes to a deeper theoretical understanding of digital adoption, highlighting AI’s capacity to mitigate the adverse effects of low financial literacy. For both Fintech companies and policy-makers it gives a broader picture of how Artificial intelligence and the tools connected with it are increasing access of all financial services to the more distanced population who aren’t able to connect. The study shows the Artificial intelligence connection with financial inclusion and how it transforms the extended potential in helping the increase in digital adoption which helps in developing economies and how it empowers the underserved population through the connection internet banking through the help of AI.