This study investigates how AI-assisted financial tools influence green finance engagement (GFE) and how, in turn, GFE impacts sustainable consumption behavior (SCB) among residents in the United Arab Emirates (UAE).
Grounded in the technology acceptance model and utility theory, the research utilizes a quantitative approach based on a structured questionnaire. Data from 379 UAE respondents were analyzed using partial least squares structural equation modeling (PLS-SEM) to examine direct and mediated relationships among AI tools, GFE and SCB.
The study found that AI-assisted tools significantly enhance GFE among UAE residents. This increased engagement, in turn, positively influences SCB, confirming GFE’s mediating role. The results highlight that individuals are more likely to adopt green financial behaviors when AI tools improve accessibility, usability and perceived utility of financial services. Additionally, utility maximization – balancing economic and environmental benefits – plays a key role in motivating sustainable financial decisions. These findings support the integration of AI technologies in promoting eco-conscious financial behavior and offer practical insights for policymakers and financial institutions.
This study is constrained by its reliance on data from 379 residents of the United Arab Emirates, which may limit the applicability of the findings to other cultural or regional contexts. Its cross-sectional design further restricts the ability to draw conclusions about causality or changes over time. Moreover, the use of self-reported data introduces the potential for social desirability bias.
Unlike prior studies that isolate the effects of AI or green finance on consumer behavior, this research uniquely explores their intersection and the mediating role of green finance engagement. It adds a consumer-centric perspective to the literature on how AI enables sustainable financial behavior by aligning economic benefits with environmental priorities, thus supporting sustainability and digital innovation in the UAE and comparable emerging markets.
