RBI For Expert Panel On Ethical Use Of AI In Fin Sector

Mumbai: The RBI has decided to constitute a committee to develop a Framework for Responsible and Ethical Enablement of AI (FREE-AI) in the financial sector, RBI Governor Shaktikanta Das announced here on Friday.

The FREE AI committee will look into a framework that will address critical challenges, including algorithmic transparency and protection of user data, and create a roadmap for sustainable AI integration within the financial sector.

"To harness the benefits of these technologies while addressing the associated risks, such as algorithmic bias, explainability, and data privacy, a committee comprising experts from diverse fields will be set up to recommend a framework for responsible and ethical enablement of AI," Das said after the RBI’s Monetary Policy Committee meeting.

The financial sector landscape is witnessing paradigm shifts with the advent of frontier technologies. Technologies like Artificial Intelligence (AI)/ Machine Learning (ML), tokenisation, Cloud Computing hold transformative potential for the financial sector as they can handle enormous volumes of data, automate complex processes, enhance decision-making, and bring in unprecedented efficiencies.

“While the benefits are many, the attendant risks like algorithmic bias, explainability of decisions, data privacy, etc., are also high. To harness the benefits, it is critical to address the attendant risks early in the adoption cycle,” the RBI said.