Ethical AI in Financial Inclusion: The Role of Algorithmic Fairness on User Satisfaction and Recommendation

This study investigates the impact of artificial intelligence (AI) on financial inclusion satisfaction and recommendation, with a focus on the ethical dimensions and perceived algorithmic fairness. Drawing upon organizational justice theory and the heuristic–systematic model, we examine how algorithm transparency, accountability, and legitimacy influence users’ perceptions of fairness and, subsequently, their satisfaction with and likelihood to recommend AI-driven financial inclusion services. Through a survey-based quantitative analysis of 675 users in China, our results reveal that perceived algorithmic fairness acts as a significant mediating factor between the ethical attributes of AI systems and the user responses. Specifically, higher levels of transparency, accountability, and legitimacy enhance users’ perceptions of fairness, which, in turn, significantly increases both their satisfaction with AI-facilitated financial inclusion services and their likelihood to recommend them. This research contributes to the literature on AI ethics by empirically demonstrating the critical role of transparent, accountable, and legitimate AI practices in fostering positive user outcomes. Moreover, it addresses a significant gap in the understanding of the ethical implications of AI in financial inclusion contexts, offering valuable insights for both researchers and practitioners in this rapidly evolving field.