India cenbank chief warns against financial stability risks from growing use of AI


FILE PHOTO: Shaktikanta Das, Governor of the Reserve Bank of India (RBI) speaks during the Global Fintech Fest in Mumbai, India, August 28, 2024. REUTERS/Francis Mascarenhas/File Photo

MUMBAI (Reuters) - The growing use of artificial intelligence and machine learning in financial services globally can lead to financial stability risks and warrants adequate risk mitigation practices by banks, the Governor of the Reserve Bank of India said 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 said at an event in New Delhi.

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