Does artificial intelligence promote financial inclusion? Evidence from developing countries

Vaseem Akram, Anant Srivastav, Bushra Praveen and Gulnawaz Usmani

Journal of Economic Studies, 2025, vol. 53, issue 8, 1497-1513

Abstract: PurposeThis article aims to shed light on the nexus between artificial intelligence (AI) and financial inclusion in 13 developing countries from 2017 to 2023.Design/methodology/approachThe analysis employs panel data techniques, including pooled ordinary least squares, cross-section weighted POLS, robust least squares and feasible generalised least squares, to examine the impact of AI on financial inclusion.FindingsEmpirical results demonstrate that AI significantly enhances financial inclusion in the selected economies. The findings are robust across the alternative panel estimation techniques.Practical implicationsFrom the policy viewpoint, these findings imply that the widespread adoption of AI in the financial sector is vital to enhance financial inclusion and address current financial exclusion issues, especially in developing countries.Originality/valueThe rapid digital transformation in recent years has reshaped financial service access, with digitalisation's role in financial inclusion well investigated. However, the role of AI remains underexplored, especially in developing nations. This study addresses the geographic gap by providing new empirical evidence on the relationship between AI and financial inclusion in developing economies, enriching existing literature.

Keywords: Artificial intelligence; Financial inclusion; Developing countries; Panel data model (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/jes/article/53/8/1497/1300 ... ce-promote-financial (text/html)
https://www.emerald.com/jes/article-pdf/53/8/1497/ ... s-03-2025-0148en.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:jespps:jes-03-2025-0148

DOI: 10.1108/JES-03-2025-0148

Access Statistics for this article

Journal of Economic Studies is currently edited by Prof Mohsen Bahmani-Oskooee

More articles in Journal of Economic Studies from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().