The Pivotal Role of AI in Enhancing Financial Literacy in India

Abstract

Another important aspect of Porath’s measures of individual freedom is financial literacy; it is an important component most individuals need when making decisions concerning monetary strategies, investments or planning. The scenario is more so in a country such as India where financial illiteracy remains one of the major challenges given that incorporation of Artificial Intelligence (AI) into the financial sector offers a breakthrough in this regard. In this paper the focus is in understanding the importance of AI and how it has helped improve the level of financial literacy of the people of India especially the unserved demographic segments. Closely, it assesses the current levels of financial literacy in India, possibilities of enhancing the financial literacy through AI based applications, as well as the threats and opportunities for integrating this technology in the evaluation of the purpose.