AI without safeguards can amplify existing weaknesses in financial sector: RBI DG

Adoption of artificial intelligence (AI) without safeguards can amplify existing weaknesses and create new problems in the financial sector, Reserve Bank Deputy Governor Swaminathan J has said.

Delivering the CUB Shri V Narayanan Memorial Lecture at the SASTRA University, Thanjavur, he said artificial intelligence is beginning to reshape how financial institutions serve customers, process documents, assess credit, monitor risks, and strengthen oversight.