Technological progress at the rapid rate in India, in particular in fields such as artificial intelligence (AI), blockchain and data analysis, have opened new possibilities to transform traditional financial services and processes, stressed the survey Economic of India 2024-2025.
AI and large language models (LLM) have improved customer service with interactive chatbots and tailor -made experiences, while blockchain offers secure, transparent and efficient transactions. In addition, the change in behavior and consumer expectations – fueled by digital natives and the growing demand for personalized financial solutions, seamless and practical – push companies and new arrivals established to innovate in order to remain competitive.
India’s economic survey, which examines national trends and AIDS to determine the allocation of resources, was presented by the Minister of Indian Finance Nirmala Sitharaman in Parliament on January 31. One day it was published before the announcement of the Union of India budget, an annual financial report describing the government expected government, expected income and expenses for the next financial year.
“Now the world is in the digital era of artificial intelligence (AI), driven by the reduction in storage and data processing costs, better accessibility and connectivity. These innovations can lead to higher automation and often improve the speed and precision of human decision -making when they are properly managed to mitigate risks, “said the economic survey.
“The use cases and automatic learning (ML) by banks in India are distributed in areas such as credit subscription, regulatory capital planning, liquidity management, detection and Prevention of fraud, risk assessment and management, portfolio optimization, price models and chatbots and chatbots, “added the survey.
In November of last year, the Reserve Bank of India (RBI) recognized an increased mention of technologies related to artificial intelligence (AI) in annual reports of public sector banks, a space once actively explored by Banks in the private sector. In its October bulletin, the Central Bank’s report underlined that “enthusiasm” for AI technologies among public sector banks in India is now largely on equality with private sector banks, in particular In recent years.
For example, Bank of Baroda, one of the main banks in the public sector in India, introduced an artificial intelligence (IA) generative, a virtual relationship manager (VRM) to improve digital customer service. The VRM acts as a relationship manager, advising customers on investments and available financial services.
This innovative VRM is a first in the local banking sector and aims to help customers by providing real -time information on the Bank products and services. It also helps to identify customer needs for specific banking services and can help basic tasks such as obtaining account statements, requests for checkbook, request for debit cards and issuance of certificates of interest.
‘Some risks’
The economic survey said that, with the advantages, the use of AI in the banking system has some risks.
The dark nature of AI systems can make it difficult to assess their reliability or dispute their decisions. This lack of transparency raises concerns concerning confidence and complicates the validation of equity and the accuracy of AI decisions, which makes it difficult to audit or understand the algorithms that underpin these decisions.
Responsibility problems arise when it is difficult to trace decisions to their origin or to assign responsibility. Other risks include human resources problems, such as insufficient human surveillance, over-dependence on AI and erosion of human expertise.
The threats of cybersecurity, malicious activities such as fraud with synthetic identity, trading thug and market manipulation are also major concerns. System risks are important problems, such as the inability to intervene or manage market correlations.
“The establishment of robust AI governance is the first crucial step to meet the challenges that accompany the implementation of AI systems. Without an appropriate governance framework, AI systems can operate without clear directives or surveillance, leading to potential abuses or improper use of technology, “said the economic survey.
“As vulnerabilities could evolve with the pace of innovation and the degree of integration of AI into financial services, regulatory and supervision efficiency can take a rear seat if skills and knowledge related to financial regulators Do not follow the pace of developments in this space “, the investigation,” the investigation added.
So far, the RBI has created a regulatory sandbox focused on innovative technological products and services.
The RBI recently announced the creation of a committee to create a framework for a responsible and ethical activity of artificial intelligence (free-ai) in the financial sector.
The RBI initiative intervenes while the generator (GENAI) should add $ 359 to $ 438 billion to the gross domestic product (GDP) from here 2029-2030, highlighting the need for ethical use And head of technology to support the financial sector and the country’s economy and the country’s economy and the growth country.
The RBI has also introduced a model based on artificial intelligence / automatic learning (AI / ML), Mulehunter.ai, developed by the Bank Innovation Hub (RBIH), to combat digital fraud. The AI model should also help banks cope with the question of Mule bank accounts, a typical tactic used to channel the product of their fraudulent activities.
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