Indian Consumers and AI-Generated Green Finance Messaging: Trust, Skepticism and Purchase Intention

Purpose

India's financial sector is undergoing a quiet but consequential transformation. As banks and FinTech platforms deploy generative AI to craft sustainability-focused communication, millions of consumers now encounter green finance messaging authored not by humans but by algorithms. Whether this shift strengthens confidence or deepens skepticism remains empirically unresolved, particularly across emerging markets where digital literacy and institutional trust vary considerably.

Methodology

Grounded in the Stimulus-Organism-Response framework, Signalling Theory, and Attribution Theory, a conceptual model is developed wherein AI source disclosure shapes perceived message authenticity, which drives green skepticism and subsequently influences green trust and purchase intention. Primary data were collected from urban Indian consumers through a structured survey. Partial Least Squares Structural Equation Modelling via SmartPLS 4 is used for hypothesis testing, with digital literacy and prior greenwashing experience as moderating variables.

Findings

AI source disclosure amplifies green skepticism and weakens perceived authenticity, thereby eroding green trust. Revealing AI sources leads to greater green skepticism and reduced perceived authenticity, which in turn harms green trust. Digital literacy moderates this effect, with consumers familiar with AI being comparatively more tempered in their skepticism. Green trust is an important link between skepticism and purchase intention for ESG mutual funds, green bonds and sustainable fixed deposits.

Originality

The study is one of the first empirical studies on consumer responses to AI-generated green finance messaging in an emerging market. It extends the theory of green consumer behaviour to the AI-mediated space and provides practical recommendations for financial marketers managing algorithmic sustainability communication in India.