The role of artificial intelligence in enhancing financial literacy, decision-making and growth, for small businesses in underserved communities

This study examines the role of Artificial Intelligence (AI) in enhancing financial literacy, decision-making, and growth among small businesses in underserved communities in the USA. Grounded in the Resource-Based View (RBV) of the firm, the research conceptualizes AI as a strategic intangible resource that can confer a competitive advantage when integrated with complementary capabilities. A quantitative methodology was employed, utilizing a structured questionnaire administered to 400 small business owners. The findings reveal a positive correlation between the level of AI adoption and key business outcomes; firms with high AI adoption reported significantly higher financial literacy scores, superior decision-making quality, and an average profit growth rate of 9.5%, compared to 5.8% for low adopters. However, the study identifies significant mediating barriers, including low participation in AI training, uneven educational backgrounds, and demographic disparities related to gender and age, which constrain widespread and effective adoption. The results underscore that the transformative potential of AI is not automatic but is contingent upon the presence of digital literacy, contextualized tools, and a supportive ecosystem. The study concludes with targeted recommendations for policymakers, financial institutions, and entrepreneurs, emphasizing the need for multi-stakeholder collaborations to design inclusive AI solutions, bridge the digital skills gap, and foster an environment where AI can truly serve as a lever for equitable entrepreneurial growth and resilience in marginalized settings.