RBI Governor Advocates for Trustworthy AI in Financial Sector

RBI Governor Shaktikanta Das emphasized the need for trustworthy AI in the financial sector, highlighting the transformative potential of AI/ML in fraud detection, credit scoring, and regulatory compliance. He also discussed challenges like data privacy and the role of emerging technologies such as quantum computing and IoT in enhancing the financial ecosystem.

RBI Governor Shaktikanta Das stressed the importance of fostering 'trustworthy AI' in the financial sector, citing data privacy and other key factors as crucial considerations. He spoke on Wednesday at the Global Fintech Fest, outlining the transformative potential of technologies like AI, ML, quantum computing, and IoT.

Das highlighted the unprecedented changes AI and ML could bring to financial services, particularly in fraud detection, credit scoring, and predictive analytics. He noted the growing roles these technologies will play in regulatory compliance and investment advisory services, urging a balanced adoption to mitigate associated risks.

The Governor also emphasized the strategic investments and collaborations needed to integrate future technologies into India's financial ecosystem ethically and effectively. Additionally, he addressed the challenges faced by green bond frameworks, suggesting blockchain technology as a solution for enhancing transparency and traceability.

(With inputs from agencies.)