The Impact of Digital Financial Literacy in Banking Sector and E- commerce

Abstract

The research contrasts the UK, with widespread use of AI in banking and e-commerce, with Pakistan, where its adoption is still in its beginning. In the UK, it improves productivity, customer experiences, and risk management, supported by a backbone of strong and developed infrastructure and regulatory frameworks. In Pakistan, this happens because of deficient infrastructure, regulatory barriers, and poor digital literacy. This research uses secondary data as a qualitative methodology to evaluate current trends, key drivers, and obstacles to AI implementation in the two countries. The results vary greatly, ranging from how the UK applies AI toward operational efficiency and customer satisfaction, while Pakistan applies it in overcoming infrastructural and regulatory challenges. Finally, it concludes with recommendations for better AI adoption in Pakistan, which can lead to the strengthening of the digital ecosystem, regulatory frameworks, and international cooperation with the UK. As a result, these are essential steps to bridge the gap in AI adoption between both nations for deriving economic growth and enhanced operational efficiency. Most significantly, the research underlines that for AI to reach its full potential, strategic investments in banking and e-commerce require urgent policy intervention.