SMART MONEY, GREEN CHOICES: THE ROLE OF AI AND QUALITY EDUCATION IN SHAPING SUSTAINABLE INVESTMENT BEHAVIOUR AMONG INDIAN YOUTH

Abstract

The convergence of artificial intelligence (AI) and financial education presents a transformative opportunity to redirect investment behaviour toward sustainability. Against the backdrop of India's aspirations for a net-zero economy by 2070 and the rapid expansion of its youth investor base, this chapter investigates how AI-powered financial tools and the quality of formal financial education jointly influence sustainable investment behaviour among Indian youth. Drawing on primary survey data collected from 412 Indian respondents aged 18 to 30 years across metro and non-metro regions, this study employs a quantitative research design rooted in the Theory of Planned Behaviour (TPB) and the Technology Acceptance Model (TAM). Structural equation modelling (SEM) and multiple regression analyses were conducted to assess the predictive power of AI literacy, financial education quality, ESG awareness, and risk tolerance on green investment intention and behavior Results demonstrate that AI literacy (β = 0.287, p .001) and quality financial education (β = 0.314, p.001) are the strongest predictors of sustainable investment intentions. ESG awareness mediates the relationship between digital financial exposure and actual green investment behaviour. The model explains 57.9% of the variance in sustainable investment behaviour. Significant regional and generational disparities are identified, with metro-based, postgraduate youth showing markedly higher propensity for ESG-aligned investments. The chapter offers actionable policy recommendations for curriculum designers, fintech developers, and policymakers to cultivate a green investment culture among India's digitally native youth population.