The Role of Artificial Intelligence in Promoting Financial Inclusion in Developing Countries

Abstract

This research study investigates the role of artificial intelligence (AI) in promoting financial inclusion in four countries, Pakistan, China, India, and Malaysia, during the sample period from 2014 to 2023. The key role of the study is to evaluate the relationship between AI Adoption, Internet Access, literacy rates, economic growth and financial inclusion that exist in these emerging economies. This research study employs a quantitative research design, utilizing regression analysis to examine the relationship between the dependent variable, financial inclusion, and the independent variable, AI adoption. Internet access, literacy rate, and economic growth are the control variables of the study. The findings allegedly imply that all three independent variables play significant roles in the process of financial inclusion, with AI Adoption and Internet Access being the most accurate predictors. AI Adoption is quite transformative in terms of facilitating access to financial services, especially in emerging markets, whereas Internet Access is vital for facilitating digital financial services. Although economic growth was also found to be significant, it had less impact on financial inclusion than the variables related to technology. The paper explains the significance of industrial infrastructure and income equality in achieving financial inclusion.

Keyword: Artificial intelligence; Financial inclusion; Internet Access; Literacy rate; Economic growth