Financial institutions must put in place adequate risk mitigation measures against risks posed by AI says RBI Governor

Business Standard reports that the Reserve Bank of India (RBI) Governor has emphasized the need for financial institutions to implement adequate risk mitigation measures against risks posed by artificial intelligence (AI). The governor highlighted the potential risks associated with AI, including data privacy concerns, cybersecurity threats, and ethical issues. Financial institutions are urged to adopt robust risk management frameworks to address these challenges and ensure the safe and responsible use of AI technologies. This directive underscores the importance of proactive risk management in the rapidly evolving financial sector, where AI is increasingly being integrated into various operations.