Exploring the Impact of Artificial Intelligence on Financial Inclusion: Cross-Country Analysis

Yogeeswari Subramaniam (), Nanthakumar Loganathan (), Fatin Nur Hidayah Taib Khan () and Thirunaukarasu Subramaniam
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Yogeeswari Subramaniam: Universiti Teknologi Malaysia
Nanthakumar Loganathan: Universiti Teknologi Malaysia
Fatin Nur Hidayah Taib Khan: Universiti Malaysia Sarawak

Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, 2025, vol. 178, issue 3, No 10, 1227-1244

Abstract: Abstract This study uses panel data from 29 countries that were categorised from low to high in terms of AI adoption from 2017 to 2021 to investigate the impact of artificial intelligence on financial inclusion. The study employed both static and dynamic Generalized Method of Moments (GMM) panel data estimations to achieve the research objective. The findings show that artificial intelligence is a statistically significant determinant of financial inclusion and helps promote financial inclusion in countries that adopt artificial intelligence. Besides that, robustness analysis conducted for alternative measures of AI, and the results continue to demonstrate that AI contributes to financial inclusion by addressing some of the issues that have historically made it difficult for some groups to receive financial services. As a result, significant expansion, and the deployment of artificial intelligence in the finance sector are required to overcome existing financial exclusion and promote financial inclusion. and solve the existing financial exclusion issues.

Keywords: Artificial intelligence; Financial inclusion; Static panel estimation; Dynamic GMM (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s11205-024-03380-1

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