RBI governor Shaktikanta Das has ‘AI warning’ for financial institutions: “…failures or disruptions in these systems…”
RBI Governor Shaktikanta Das warns against the systemic risks posed by heavy reliance on AI in the financial sector, including concentration risks, susceptibility to cyberattacks and data breaches, and difficulties in auditing AI-driven decisions. Banks and other financial institutions are urged to place adequate risk mitigation measures against these risks.