This warning from Das comes amidst increased government focus on AI, both in terms of deployment and regulation. The Union Cabinet recently approved the IndiaAI Mission with substantial funding over the next five years. Additionally, initiatives such as IndicVoices and collaborations between NPCI and IISc, Bengaluru, underscore India’s commitment to AI research and development.
Das emphasized the importance of reinforcing monitoring systems and utilizing technology to preemptively identify potential frauds. The RBI Governor warned that the adoption of AI, without adequate safeguards, could compromise customer data. He stressed the need for financial institutions to dedicate significant efforts towards safeguarding customer information and promptly addressing vulnerabilities that expose customers to risks.
Furthermore, Das cautioned against the risks associated with deploying AI without appropriate safeguards, including privacy invasion and subtle manipulations of end customers based on consumer profiling. However, he acknowledged the potential of AI in enhancing customer service, preventing frauds, and protecting data.
Das highlighted the role of technology, coupled with behavioral analysis, in detecting anomalies in consumer behavior and preventing frauds. He urged regulated entities to leverage data analytics to anticipate customer needs, address issues proactively, and streamline processes, utilizing the wealth of data they possess on financial transactions and customer interactions.
On the regulatory front, MeitY issued an advisory mandating digital platforms to seek prior approval before deploying AI models, along with ensuring the labeling of under-trial AI models and preventing the hosting of unlawful content on their platforms.
