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India Cenbank Chief Warns Against Financial Stability Risks From Growing Use of AI
The growing use of AI and machine learning in financial services globally can lead to financial stability risks and warrants adequate risk mitigation practices by banks, the Governor of the Reserve Bank of India said on Monday. From a report: "The heavy reliance of AI can lead to concentration risks...
From a report:"The heavy reliance of AI can lead to concentration risks, especially when a small number of technology providers dominate the market," Shaktikanta Das said at an event in New Delhi. India's financial service providers are using AI to enhance customer experience, reduce costs, manage risks and drive growth through chatbots and personalised banking. AI's "opacity" makes it difficult to audit and interpret algorithms which drive lender's decisions and could potentially lead to "unpredictable consequences in the market," he warned.
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