AI and Gen AI: A Catalyst for Transforming Financial Systems

M Nagaraju, DFS Secretary, highlights the urgent role of AI and Generative AI in revolutionizing the financial sector. Speaking at a banking conference, he urged the adoption of AI-driven models to prevent financial catastrophes and emphasized the necessity for data accuracy and bias prevention in training AI algorithms.

DFS Secretary M Nagaraju underscored the transformative role of AI and Generative AI technologies in revolutionizing existing financial tech platforms. Speaking at the Indian Banking Association's annual technology conference, he highlighted the need for AI-driven predictive models to avert potential catastrophic incidents in the financial sector.

Nagaraju pointed out that financial systems globally are embracing AI and Generative AI, stressing that Indian institutions must follow suit to remain competitive. He emphasized the importance of ensuring data used in AI training is devoid of bias to enhance the systems' effectiveness.

Highlighting international examples, Nagaraju noted that regions such as Europe, Hong Kong, and Singapore are already instituting frameworks for AI integration. He revealed that India's RBI is similarly incorporating AI-specific guidance, with Canada introducing the PRE-AI Framework to responsibly enhance AI's role in finance. He called for massive investments to build a robust AI ecosystem, essential for the country's financial resilience.

(With inputs from agencies.)