AI has revolutionized the industry decision-making processes by offering unprecedented tools to enhance efficiency, precision and creativity. This study aims to uncover how AI literacy and AI efficacy empower French women entrepreneurs to overcome behavioral biases, particularly overconfidence and anchoring, thereby transforming their investment decisions for greater impact.
Data were collected from the 330 women entrepreneurs residing in Strasbourg, France, using the proportionate stratified sampling technique. PLS-SEM was used to analyze the data and to build the structural relationship among the measured and latent constructs.
The study findings explained that overconfidence and anchoring bias significantly impact investment decisions. Additionally, AI literacy significantly mediates the relationship between overconfidence and anchoring bias with investment decisions. Moreover, the moderating effect of AI efficacy strengthens the relationship between cognitive biases and investment decisions, suggesting that higher levels of AI efficacy mitigate the adverse effects of overconfidence and anchoring biases. This, in turn, enhances prudence in investment decisions and reduces the likelihood of irrational choices.
This research provides new insights into how AI tools help overcome behavioral biases and improve investment decisions. By keeping in view, the women lead enterprises, this research fills the gap that enhancements in AI literacy tools can lead toward rational investment choices.
