AI-Based Financial Literacy, Perceived Ease of Use, Technology Readiness, and Personal Financial Management Behavior: the Mediating Role of Trust in AI

Abstract

Advances in artificial intelligence (AI) have transformed personal financial management, yet the gap between the adoption of digital financial tools and the financial literacy and trust required for effective use remains underexplored, particularly in urban Indonesia. This study examines the effects of AI-Based Financial Literacy, Perceived Ease of Use, and Technology Readiness on Personal Financial Management Behavior, with Trust in AI as a mediating variable. The study extends the Technology Acceptance Model (TAM) and Technology Readiness Index (TRI) through the Stimulus-Organism-Response (S-O-R) framework by integrating trust into an AI-based financial behavior model. A quantitative explanatory design was employed using survey data from 200 purposively selected respondents in Depok City, aged 18–40 years and using AI-based financial applications. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS. The results show that AI-Based Financial Literacy (β = 0.214; p = 0.001), Perceived Ease of Use (β = 0.187; p = 0.005), and Technology Readiness (β = 0.168; p = 0.008) positively and significantly affect Personal Financial Management Behavior. All hypotheses (H1–H6) were supported, with R² = 0.612. The findings confirm that Trust in AI mediates these relationships. The study contributes to TAM and TRI by highlighting trust as a mechanism linking AI-related capabilities to financial behavior and offers implications for developing an inclusive and trustworthy digital financial ecosystem.