Leveraging Artificial Intelligence for Financial Inclusion: A Pathway to InclusiveDevelopment Finance in Zimbabwe

Abstract

This study investigated the impact of Artificial Intelligence (AI) on financial inclusion in Zimbabwe, with particular focus on access to credit, digital financial service usage, and financial literacy among underserved populations. Using panel data from 2010 to 2024 across eight provinces, the study employed fixed-effects and Feasible Generalised Least Squares (FGLS) econometric models to analyse the relationship between AI adoption and financial inclusion outcomes. The results indicated that AI adoption had a negative and statistically significant effect on financial inclusion, suggesting that technological advancements alone did not guarantee inclusive outcomes. This exclusionary effect was attributed to structural challenges, including limited digital infrastructure in rural areas, low smartphone penetration, inadequate digital and financial literacy, and unequal access to AI-enabled financial platforms. Conversely, financial literacy was found to be the most significant and consistent positive driver of financial inclusion. Drawing on these findings, the study proposed an inclusive AI deployment framework consisting of four key dimensions: digital infrastructure expansion, financial and digital literacy development, adaptive regulatory support, and user-centred fintech design. The study provided empirically grounded insights to support policymakers in aligning AI adoption with inclusive development finance strategies in Zimbabwe.