Evaluating the capacity and limitations of generative AI in financial decision making

Abstract

Financial services industry has experienced enormous changes, as a result innovations are constantly taking place to cater to new financial needs of individuals, globally. Though innovative and complex financial products present consumers with a variety of investment options, yet at the same time, this variety tends to complicate the decision-making process, when faced with too many options to choose from, especially ones that may be artificial intelligence based and too technologically advanced for consumers to understand, hence consumers find it challenging to reach a decision. The primary concept behind conducting this study is to analyse the phases at which consumers are more vulnerable in the developing countries by walking through their decision-making process of acquiring technologically advanced financial products. This qualitative study is based on 50 interviews and themes are formed using qualitive SQL software. The findings reveal that consumers are quite vulnerable due to the lack of; financial and digital literacy, bank cooperation, trust issues and regulative discrepancies. The study also makes recommendations for the practitioners and the policy makers for a better and sustainable financial inclusion.