Governor of the Reserve Bank of India (RBI), Shaktikanta Das, stated on February 15 that authorities overseeing the global financial markets must exercise caution over the potential abuse of machine learning (ML) and artificial intelligence (AI) in the commission of financial fraud.
In his speech to the 59th SEACEN Governors’ Conference in Mumbai, he urged that appropriate measures must be taken to stop technology abuse.
According to Das, there have been significant changes in the labor market dynamics, job processes, and technology advancements in the post-pandemic era.
He went on to say that the widespread acceptance of work-from-home opportunities, online learning, and shopping has changed how we work, learn, and live.
“Digitalization and technological innovation are affecting every economic sector. In order to survive, businesses are adjusting to these developments, according to the governor.
The application of cutting-edge technologies like AI and ML to increase productivity is widespread. These technologies provide us with new opportunities, but they also bring with them difficulties that we must resolve.
M Rajeshwar Rao, the Deputy Governor of the Reserve Bank of India, raised worries last month about financial institutions utilizing artificial intelligence.
Some of these worries, according to Rao, are more conventional and user-specific and include data privacy, cybersecurity, consumer protection, and maintaining financial stability. Other dangers are design-specific and include biases and robustness challenges.
According to Rao, artificial intelligence (AI) is only as good as the data it was trained on, inheriting the flaws, biases, and mistakes present in that data. Through their lifetime of exposures, experiences, evidence, and upbringing, humans amass this kind of training data. This enables us to draw multiple conclusions from the same set of data.
Inflation and Growth
The governor of the Reserve Bank of India went on to say that prudent fiscal and monetary policies have made it possible for India to successfully navigate these choppy waters.
The Reserve Bank of India predicts that the Indian economy will expand by 7.0% in 2024–2025, which would be the fourth year in a row that growth has been at or above 7%.
Das continued, saying that inflation has decreased from its summer 2022 highs. However, persistent shocks to food prices and resurgent geopolitical flashpoints present obstacles to the ongoing disinflation process.
“Since the final mile of disinflation is frequently the most challenging, we continue to be alert to steer through it. We sincerely believe that low and stable inflation would give as the cornerstone required for long-term, steady economic growth,” Das stated.
