JSFA Vol. I: ‘Financial Literacy in the Age of Artificial Intelligence’ Synopsis

Authors: Benjamin Ellul & Aleksandra Dimitrova

Humanity has experienced several industrial revolutions that reshaped economies, societies, and ways of living. Today, we stand at the dawn of another radical transformation, the Age of Artificial Intelligence (AI). Unlike previous shifts, AI is not only automating tasks but also learning, adapting, and influencing human decision-making. This new era carries profound implications for the financial sector, employability, consumer protection, and education. Success in navigating this revolution will depend largely on how effectively societies can cultivate digital and financial literacy to ensure inclusion and resilience. 

The financial sector exemplifies AI’s rapid integration. Institutions such as the Commonwealth Bank of Australia already leverage AI to streamline operations and enhance customer engagement. However, for consumers to benefit from such innovations, they must understand the technologies they interact with. Regulators such as the European Supervisory Authorities emphasise consumer education as a supervisory priority, yet educational systems often lag behind technological advances. Financial literacy remains low, even in advanced economies, and curricula rarely prepare individuals for practical decision-making in complex financial environments. This educational gap contributes to generational divides: older consumers rely on outdated methods, while younger individuals adopt digital tools but often lack formal training. 

Generational shifts are also evident in workplaces, where younger employees, especially Gen Z, are leading the adoption of AI tools such as ChatGPT. Their familiarity with technology has accelerated “reverse mentoring,” where younger staff train more experienced colleagues. However, this highlights the urgent need to upskill older generations and provide structured training for all employees. Without targeted education, workplaces risk deepening divides between digital natives and those struggling to adapt. 

Emerging technologies such as blockchain, cryptocurrencies, and AI-driven autonomous agents are further reshaping financial services. These tools enable decentralised transactions, automated investment strategies, and cross-border fund management with minimal human intervention. While they increase efficiency, they also introduce new risks and knowledge gaps. Older generations in particular face challenges understanding these innovations, leaving them more vulnerable to fraud and misinformation. Regulators find themselves in an ongoing struggle to combat scams fueled by digital platforms and celebrity endorsements. Closing the education gap is therefore a prerequisite for effective regulation and consumer protection. 

The abundance of information available today paradoxically complicates matters. Consumers are inundated with advice, trends, and marketing, but lack the critical skills to differentiate legitimate opportunities from fraudulent schemes. Without consistent financial education, even advanced regulatory frameworks lose their effectiveness. Regulators, institutions, and educators must work in tandem to provide individuals with both foundational knowledge and practical tools for navigating digital finance. 

Ultimately, the Age of AI demands a human-centered approach that aligns technological progress with sustainability, resilience, and inclusion. Both consumers and employees need lifelong learning opportunities to adapt to continuous change. Financial institutions and regulators must invest not only in technological innovation but also in equipping people to use it responsibly. The future of financial services, and the broader economy, will depend less on the sophistication of AI itself, and more on the extent to which societies empower individuals through education to thrive in this evolving digital landscape. 

To read the full article click here (page 35).