Does artificial intelligence promote financial inclusion? Evidence from developing countries

Purpose This 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/approach The 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. Findings Empirical results demonstrate that AI significantly enhances financial inclusion in the selected economies. The findings are robust across the alternative panel estimation techniques. Practical implications From 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/value The 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.