RBI deputy governor weighs on AI risks: 'Carries dual narrative of promise, peril'
&imwidth=600&imheight=450&format=webp&quality=medium "RBI deputy governor weighs on AI risks: 'Carries dual narrative of promise, peril'")
Reserve Bank of India (RBI) Deputy Governor T Rabi Sankar Photograph: (ANI file)
Reserve Bank of India (RBI) Deputy Governor T Rabi Sankar stressed that the integration of AI into financial systems must be treated with profound responsibility.
Reserve Bank of India (RBI) Deputy Governor T Rabi Sankar has said that the artificial intelligence (AI) revolution is transforming industries with unprecedented speed but poses risks if left unchecked. He said that the new technology promises extraordinary efficiency, inclusion, and innovation. However, it must be accompanied by rigorous oversight to safeguard financial stability. He was addressing the Global Fintech Fest (GFF) 2025 in Mumbai. He said that AI carries a dual narrative of promise and peril.
What RBI Governor T Rabi Sankar said on artificial intelligence
"AI is demonstrating its ability in ways unimaginable a few years back. India, too, has been a notable participant in this journey. But as with all powerful innovations, AI carries a dual narrative of promise and peril," Sankar added.
Talking about AI integration, he said that the margin for error in finance is narrower than in other fields.
He stressed that the integration of AI into financial systems must be treated with profound responsibility. "In finance, the margin for error is narrower, as financial institutions are built on trust and economies prosper on stability," he said.
The RBI Deputy Governor added that AI in financial services should be designed with safety at its core, not as an afterthought. He said AI applications mustn't be allowed to destabilize markets, payment systems, and consumer confidence.
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He also said AI systems must be subjected to rigorous oversight and layered with inherent checks, and safety must be built into the design from conception to real-world deployment.
He observed that retrofitting safeguards later can be inadequate and can destabilize the markets.
He said RBI wants technological advancement to align with financial prudence.
He said whether AI displaces jobs or creates new opportunities will depend on how "we adapt and govern its use".