{"id":57394,"date":"2024-10-15T03:42:10","date_gmt":"2024-10-15T03:42:10","guid":{"rendered":"https:\/\/www.threatshub.org\/blog\/ai-amplifies-systemic-risk-to-financial-sector-says-indias-reserve-bank-boss\/"},"modified":"2024-10-15T03:42:10","modified_gmt":"2024-10-15T03:42:10","slug":"ai-amplifies-systemic-risk-to-financial-sector-says-indias-reserve-bank-boss","status":"publish","type":"post","link":"https:\/\/www.threatshub.org\/blog\/ai-amplifies-systemic-risk-to-financial-sector-says-indias-reserve-bank-boss\/","title":{"rendered":"AI amplifies systemic risk to financial sector, says India’s Reserve Bank boss"},"content":{"rendered":"

The governor of India’s Reserve Bank, Shri Shaktikanta Das, yesterday warned that AI \u2013 and the platforms that provide it \u2013 could worsen systemic risk to the nation’s financial system.<\/p>\n

In a keynote address<\/a> [PDF] to the RBI@90 High-Level Conference, Das noted that artificial intelligence and machine learning “have opened new avenues of business and profit expansion for financial institutions.”<\/p>\n

Banks have to ride on the advantages of AI and Big Tech and not allow the latter to ride on them<\/p><\/blockquote>\n

But in his next sentence, the central bank boss warned: “These technologies also pose financial stability risks.”<\/p>\n

Das expressed concern that a small number of providers will dominate the AI market, which could lead to concentration risks.<\/p>\n

“This could amplify systemic risks, as failures or disruptions in these systems may cascade across the entire financial sector,” he warned, adding his concerns that “growing use of AI introduces new vulnerabilities, such as increased susceptibility to cyber attacks and data breaches.”<\/p>\n