Reserve Bank of India (RBI) Governor Shaktikanta Das has expressed concern over the growing risks of artificial intelligence (AI). He said over-reliance on AI can increase financial vulnerabilities.
Speaking at an event themed ‘Central Banks at a Crossroads’ organized on the occasion of the 90th anniversary of the RBI in New Delhi on Monday, Das also expressed concern over the increasing debt across the world.
Das said this is not good for monetary policy and financial stability. He also called for international cooperation to address challenges related to geopolitical tensions and climate risks.
AI and machine learning increase business and profits
Das said, “The development of modern technologies such as artificial intelligence (AI) and machine learning (ML) has opened new avenues for financial institutions to increase their businesses and profits.
Furthermore, these technologies have also increased the risk to financial stability. This risk further increases at a time when this market is dominated by only a few companies.
Banks are profiting from AI, don’t let them profit from it
The whole AI system is not very clear yet. In such a situation, it becomes difficult to audit or decode the decision-making algorithms found there.
This could pose an even greater threat to the financial market. Banks should certainly benefit from AI and Big Tech, but they should not be allowed to profit from it.