The central theme of the chapter was to demonstrate how Ethiopian
cooperative coffee farmers can make informed financial management decisions through
the mediation of human capital and AI. The investigators employed a cross-sectional
examination using the multistage method with the test group. An Exploratory Factor
Analysis (EFA) was conducted to verify whether the data were sufficient. Eigenvalues
were utilized to explore the principal proxies in the dataset. A Confirmatory factor
analysis was used to assess whether the manifested determinants could appropriately
describe the validity of the construct. SEM was used to conduct mediation analysis and
assess model fitness. According to the results, the investigation revealed a substantial
association, as the p-value was below the algebraic threshold for data adequacy, and the
sphericity was 0.893. The chi-square was below 3.0, which the investigators found
indicative of model adoption. By Tucker Lewis's fitness, the model was manifested as a
fit. The predictive ability of farmers has increased by 75% when coffee cooperatives
practice human capital mediation. Consequently, there is a fractional conflict between
the sustainability of cooperatives and their management of financial methods, brought
about by human capital and AI applications.
Keywords: AI, Coffee cooperatives, Financial management Strategies, Firm performance, Human capital.
