Bridging the Financial Divide: The Role of AI in Promoting Inclusion Among Underserved Populations

Abstract

Artificial intelligence transforms financial services by enabling scalable, low-cost solutions that extend access to underserved populations, particularly in rural and informal economic sectors. Leveraging alternative data and automation, AI augments customer engagement and risk assessment capabilities. This paper presents a comparative analysis of AI-mediated financial inclusion in India, China, and the United States, illustrating diverse applications across economic development spectrums. Although AI holds strong potential to reduce barriers and personalize services, it concurrently raises risks of algorithmic bias, privacy erosion, and amplified digital divides. The analysis emphasizes that ethical, inclusive governance is critical to ensuring AI empowers rather than marginalizes. Based on synthesized case evidence, the study validates its principal hypothesis (H1) and concludes that AI significantly promotes financial inclusion, thereby elevating financial literacy and empowering historically marginalized communities.