AI keyword usage has risen sizeably in banks: Patra

Almost three-fourths of banks and several non-banking financial companies (NBFCs) have developed chatbots and virtual assistants, said Michael Patra, deputy governor, RBI. Delivering a keynote address at the SAARC Finance seminar, he said the usage of artificial intelligence (AI) related keywords in Indian banks has increased sizeably.“A survey conducted by the RBI at June-end 2023 revealed that almost three-fourths of Indian banks and several NBFCs have developed chatbots and virtual assistants. Increased collaboration of banks and NBFCs with fintechs has facilitated introduction of model-based lending,” he said at the seminar.He added that with the increasing use of AI, concerns arise about transparency, data biases, governance, privacy and the robustness of algorithms. Hence, central banks need to ensure that there are enough checks and balances in place.