“AI Cannot Replace Human Judgment in Lending”: Sunil Govindarajan Calls for Governance-Led AI Adoption in Financial Services

India, 29 May 2026: As financial institutions accelerate AI adoption across underwriting, fraud detection, and credit decision-making, Sunil Govindarajan, CRO/Director at Optimo Capital, has cautioned against fully autonomous AI-led lending models without human oversight and governance frameworks. Speaking at the CXO Summit & Awards 2026 during a panel discussion on Digital Transformation & AI Integration, Sunil highlighted that while AI can significantly improve operational efficiency and predictive capabilities in lending, financial institutions must prioritise explainability, auditability, and real-time human validation.