From Financial Literacy to AI Literacy: Preparing Commerce Students for Algorithm-Driven Financial Decision-Making

Artificial intelligence is becoming increasingly visible in everyday financial activities. Students and consumers now encounter automated financial recommendations, digital investment platforms, personalised financial information and AI-based tools when making or evaluating financial choices. This changing environment raises an important question for Commerce education: is conventional financial literacy sufficient when financial information is increasingly mediated by algorithms? The present study examines financial literacy, AI literacy and awareness of ethical issues associated with AI-supported financial applications among Commerce students, and investigates their relationship with algorithmic financial decision quality. The study follows a descriptive and analytical research design and considers 250 student observations. Data were examined using descriptive statistics, Pearson correlation and multiple linear regression. Four major constructs were considered in the analysis: financial literacy, AI literacy, ethical awareness and algorithmic financial decision quality. The findings show that financial literacy recorded the highest mean score (M = 3.56), while AI literacy recorded a comparatively lower mean score (M = 3.33). AI literacy demonstrated the strongest correlation with algorithmic financial decision quality (r = .705, p ≤ .01), followed by financial literacy (r = .623, p ≤ .01) and ethical awareness (r = .605, p ≤ .01). The regression model explained 67.2% of the variation in algorithmic financial decision quality. AI literacy emerged as the strongest predictor (β = .443), followed by financial literacy (β = .376) and ethical awareness (β = .199), with all three predictors statistically significant at p ≤ .001. The findings suggest that financial knowledge remains essential, but it needs to be complemented by the ability to understand, question and evaluate AI-generated financial information. Commerce education therefore needs to move towards an integrated approach in which financial literacy, AI competence and ethical awareness support independent and responsible financial judgement.