MUMBAI (Reuters) – The increasing use professional system and synthetic intelligence in financial options worldwide could cause financial safety threats and warrants ample hazard discount strategies by monetary establishments, the Governor of the Reserve Bank of India claimed on Monday.
“The heavy reliance of AI can lead to concentration risks, especially when a small number of technology providers dominate the market,” Shaktikanta Das claimed at an event in New Delhi.
This would possibly improve systemic threats as failings or interruptions in these methods would possibly waterfall all through the financial business, Das included.
India’s financial supplier are making use of AI to enhance shopper expertise, decrease bills, deal with threats and drive growth by way of chatbots and private monetary.
The increasing use AI presents brand-new susceptabilities like enhanced sensitivity to cyber strikes and knowledge violations, Das claimed.
AI’s “opacity” makes it laborious to look at and translate formulation which drive lending establishment’s selections and would possibly probably trigger “unpredictable consequences in the market,” he cautioned.
Separately, Das claimed unique credit score historical past markets have really broadened rapidly world wide with minimal guideline, positioning substantial threats to financial safety, particularly contemplating that these markets have really not been stress-tested in a droop.
(Reporting by Siddhi Nayak; Editing by Eileen Soreng)
