The influence of AI literacy on risk management skills and the roles of diagnostic capabilities and prognostic capabilities: Empirical insight from Thai gen Z accounting students

Abstract

This study investigates the relationship between AI literacy, diagnostic capabilities, prognostic capabilities, and risk management skills among Generation Z accounting students in Thailand. Using a quantitative research design, data were collected from 400 participants and analyzed through Partial Least Squares Structural Equation Modeling (PLS-SEM). The results show that AI literacy positively influences both diagnostic and prognostic capabilities. In turn, these capabilities significantly contribute to the development of risk management skills, with prognostic capabilities showing a stronger effect. The findings highlight the value of integrating AI literacy into accounting education to better prepare students with essential analytical and risk-related competencies for the evolving digital landscape.