Navigating the Connections Among ‘Financial Inclusion’, Digital Lending Adoption, and Financial Literacy in India: The Mediating Role of Artificial Intelligence

Abstract: With an eye towards "Artificial Intelligence (AI)," this paper looks at the relationship between "digital lending adoption," "digital financial literacy," and "financial inclusion" in India. Based on earlier studies showing the critical need of "digital financial literacy" in advancing "financial inclusion," the article underlines the significance of financial technology solutions enhanced by artificial intelligence as a primary facilitator. The findings show that by streamlining complex financial duties and tackling financial literacy gaps, artificial intelligence helps low-income people "financial decision-making" better. This helps, especially for people with low financial literacy, more acceptance of digital lending services. Comprising 692 participants from Indian sub-continent, the study shows that artificial intelligence increases digital lending adoption on "financial inclusion" and generally increases the impact of online banking. The study underlines how artificial intelligence could minimise the negative consequences of insufficient financial literacy, thereby improving a theoretical knowledge of digital lending acceptance. For those in decision-making and fintech innovation, it shows a larger view of how artificial intelligence and related technologies are enabling access to complete financial services for underprivileged populations with limited connection. The study highlights artificial intelligence's transforming power in improving the acceptance of digital lending and shows its link with "financial inclusion." This development is very important for developing countries since it helps poor people by means of digital lending enabled by artificial intelligence. Keywords: Artificial Intelligence, ‘financial inclusion’, Financial Literacy, Digital lending, Structural Equation Model