MUMBAI (Reuters) – The expanding use expert system and artificial intelligence in monetary solutions worldwide can cause monetary security threats and warrants sufficient danger reduction methods by financial institutions, the Governor of the Reserve Bank of India claimed on Monday.
“The heavy reliance of AI can lead to concentration risks, especially when a small number of technology providers dominate the market,” Shaktikanta Das claimed at an occasion in New Delhi.
This might enhance systemic threats as failings or interruptions in these systems might waterfall throughout the monetary industry, Das included.
India’s monetary provider are making use of AI to improve consumer experience, minimize expenses, handle threats and drive development via chatbots and personal financial.
The expanding use AI presents brand-new susceptabilities like enhanced sensitivity to cyber strikes and information violations, Das claimed.
AI’s “opacity” makes it hard to examine and translate formulas which drive lending institution’s choices and might possibly cause “unpredictable consequences in the market,” he cautioned.
Separately, Das claimed exclusive credit history markets have actually broadened quickly around the world with minimal guideline, positioning substantial threats to monetary security, especially considering that these markets have actually not been stress-tested in a slump.
(Reporting by Siddhi Nayak; Editing by Eileen Soreng)
