Chapter 11: Nexus of Artificial Intelligence on Financial Inclusion and Economic Development in India

Numerous routine banking tasks, including transfers, deposits, payments, and customer care inquiries, can be automated by artificial intelligence (AI). AI is also capable of managing the approval and rejection of credit card and loan application processes, with nearly instantaneous results. Vulnerable groups, like the elderly, the disabled, and low-income people, can more easily access government subsidies and social security programs, thanks to financial inclusion (FI). This guarantees that they get the help they require to take care of their fundamental requirements and live respectable lives. In India, FI is critical to fostering economic development, lowering poverty rates, and guaranteeing the general welfare of the populace. There is a conspicuous deficiency of research that is explicitly geared to the Indian context despite the abundance of literature that primarily emphasizes the global implications of FI on economic development. Therefore, the study seeks to shed light on how FI promotes economic development among the Uttar Pradesh populace. The results of the study lend credence to the idea that FI involves efforts to include a substantial segment of the populace in the process of economic growth through the provision of a range of financial services. In Uttar Pradesh, FI has a major impact on lowering poverty, boosting the state’s economy, and raising citizens’ quality of living. In order to empower its inhabitants and create a more successful and inclusive society, the state should make formal financial services accessible and promote financial literacy.