Reserve Bank of India Governor Warns: Artificial Intelligence Could Worsen Financial System Risks

Recently, Reserve Bank of India Governor Shri Shaktikanta Das issued a warning at a key meeting, stating that artificial intelligence (AI) and related platforms could exacerbate systemic risks in the Indian financial system. At this high-level meeting themed 'RBI90,' Das pointed out that while AI and machine learning open new business and profit growth opportunities for financial institutions, they also come with significant risks. He noted that a few AI service providers could dominate the market, leading to concentration.