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AI Adoption in Finance Must Be Backed by Safeguards: RBI Deputy Governor
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Reserve Bank of India (RBI) Deputy Governor Swaminathan J has raised concerns over the unregulated and unchecked adoption of artificial intelligence (AI) in the financial sector, warning that it has the potential to aggravate existing weaknesses while also creating new and complex risks. He stressed that while AI offers significant opportunities for efficiency and innovation, its deployment without proper oversight and safeguards could adversely impact the stability and integrity of financial systems.
Addressing the gathering at the CUB Shri V Narayanan Memorial Lecture आयोजित at SASTRA University, Thanjavur, he elaborated on how AI is increasingly reshaping the financial landscape. From enhancing customer interactions and automating document processing to improving credit assessment models, strengthening risk monitoring frameworks, and supporting regulatory supervision, AI is becoming deeply embedded in core financial operations. This rapid integration is fundamentally changing how institutions function and deliver services.
However, he cautioned that the speed and scale of this transformation call for a balanced and responsible approach. He underlined that the focus should not solely be on making financial systems more technologically advanced or “intelligent,” but also on preserving essential values such as fairness, transparency, accountability, and inclusivity.
He further emphasized the importance of maintaining a human-centric approach in financial decision-making, ensuring that technology serves the broader interests of society without compromising ethical standards or trust.
Addressing the gathering at the CUB Shri V Narayanan Memorial Lecture आयोजित at SASTRA University, Thanjavur, he elaborated on how AI is increasingly reshaping the financial landscape. From enhancing customer interactions and automating document processing to improving credit assessment models, strengthening risk monitoring frameworks, and supporting regulatory supervision, AI is becoming deeply embedded in core financial operations. This rapid integration is fundamentally changing how institutions function and deliver services.
However, he cautioned that the speed and scale of this transformation call for a balanced and responsible approach. He underlined that the focus should not solely be on making financial systems more technologically advanced or “intelligent,” but also on preserving essential values such as fairness, transparency, accountability, and inclusivity.
He further emphasized the importance of maintaining a human-centric approach in financial decision-making, ensuring that technology serves the broader interests of society without compromising ethical standards or trust.
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