RBI Deputy Guv Rao flags risks of AI deployment in financial institutions

Reserve Bank of India’s Deputy Governor M Rajeshwar Rao flagged concerns over data bias, governance, and transparency from the increased use of Artificial Intelligence (AI) deployed by financial institutions.

Speaking at the 106th Annual Conference of the Indian Economic Association in Delhi on December 22, Rajeshwar Rao said, “While some of these concerns are design specific risks such as biases and robustness issues, others are more traditional and user specific such as data privacy, cybersecurity, consumer protection, and preserving financial stability.” RBI uploaded a copy of the speech on its website on Monday.