New Delhi: In a recent seminar, Reserve Bank of India (RBI) Deputy Governor Michael Patra revealed that approximately three-fourths of Indian banks and numerous non-banking financial companies (NBFCs) have successfully implemented chatbots and virtual assistants.
Patra highlighted the surge in AI-related keywords within Indian banks, citing increased collaboration between financial institutions and FinTechs as a driving force behind the adoption of model-based lending.
Furthermore, Patra emphasised the RBI’s utilisation of big data analytics, AI, and machine learning (ML) in various functions, including monetary policy, research, and data management. The data emerged from an RBI survey conducted in June 2023, underscoring the growing integration of artificial intelligence (AI) in the financial sector.
However, the deployment of AI in financial institutions has not been without concerns. On January 1, RBI Deputy Governor M Rajeshwar Rao raised apprehensions about specific risks associated with AI implementation. These risks include biases and robustness issues, in addition to more conventional concerns like data privacy, cybersecurity, consumer protection, and the preservation of financial stability.
Rao acknowledged that while humans are not immune to biases, the institutional decision-making framework incorporates checks and balances to identify and prevent them. He stressed the importance of addressing these challenges to ensure responsible and secure use of AI in the financial sector.
