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.

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Next In Tech News

AI industry not in a bubble, but stocks could see correction, SK chief says
The rise of�AI reasoning models comes with a big energy tradeoff
Amazon pays Italy 180 million euros to end tax, labour probe, sources say
Meta’s Zuckerberg plans deep cuts�for metaverse efforts
Tech tracking to tackle human-wildlife conflict in Zimbabwe
Like fancy Japanese toilets? You’ll love the sound of this.
Facebook 'supreme court' admits 'frustrations' in five years of work
Russia restricts FaceTime, its latest step in controlling online communications
Studies: AI chatbots can influence voters
LG Elec says Microsoft and LG affiliates pursuing cooperation on data centres

Others Also Read