Research Article 7
Journal of Finance & Economics Research - Volume 11, Issue 1 2026
By Sobia Jamil, Moin Uddin Siddiqui, Ahmad Sohail Lodhi

This study examines the relationship between Generative Artificial Intelligence (GenAI) use and university students critical thinking ability from a human capital economics perspective. Existing research has largely focused on GenAI technical capabilities and adoption patterns, leaving two important issues unresolved: first, whether GenAI use strengthens or weakens critical thinking, and second, through what cognitive mechanism these opposing outcomes occur. The study further investigates cognitive engagement as a mediating mechanism through which GenAI-related factors influence critical thinking. Grounded in Cognitive Load Theory, the study employs a quantitative, cross-sectional research design. Data were collected through convenience sampling using a structured questionnaire administered to 384 university students studying finance in Pakistan. The findings show that GenAI use can enhance critical thinking when it promotes greater cognitive engagement. AI literacy demonstrates a positive association with cognitive engagement, which subsequently improves critical thinking ability. Perceived AI accuracy also positively influences cognitive engagement; however, its indirect effect on critical thinking through cognitive engagement is statistically insignificant. In contrast, AI dependency has a strong negative effect on cognitive engagement and generates a significant negative indirect effect on critical thinking ability. The study contributes theoretically by providing empirical support for Cognitive Load Theory in the context of human AI interaction. From a human capital economics perspective, the findings have important implications for workforce productivity, financial decision-making, and long-term economic resilience. Developing AI-related competencies may help prevent skill depreciation, whereas excessive AI dependency may contribute to cognitive deskilling, potentially increasing professional judgment errors, asset mispricing, and financial market fragility. Overall, the study demonstrates that strategically managing human AI interaction is essential for sustaining human capital quality, productivity, critical thinking capability, and financial system resilience.

Submission Date: 15 Apr, 2026 Reviews Completed: 27 May, 2026
Acceptance Date: 16 Jun, 2026 Publication Date: 30 Jun, 2026