Blindly adopting tech without understanding its biases can be counter-productive: RBI ED

Financial innovations need to be responsible and one must not “blindly” adopt the latest technological breakthroughs, Reserve Bank’s Executive Director Ajay Choudhary said on Thursday. “A blind adoption without understanding the biases that the models build with the help of adoption of advanced tech could prove counterproductive in many cases,” Choudhary said addressing an event by industry lobby Assocham in Mumbai.

It is also desirable that models should be built over sufficiently large time-series data, he added.

The RBI is focused on adapting newer innovations, he said, adding that newer technologies like artificial intelligence, the internet of things, blockchain, quantum computing, big data analytics, and 5G bring a lot of disruptive benefits.