India Cenbank Chief Warns Against Financial Stability Risks From Growing Use of AI (reuters.com)
(Monday October 14, 2024 @11:26AM (msmash)
from the how-about-that dept.)
- Reference: 0175249747
- News link: https://tech.slashdot.org/story/24/10/14/1454216/india-cenbank-chief-warns-against-financial-stability-risks-from-growing-use-of-ai
- Source link: https://www.reuters.com/technology/artificial-intelligence/india-cenbank-chief-warns-against-financial-stability-risks-growing-use-ai-2024-10-14/
The growing use of AI and machine learning in financial services globally can [1]lead to financial stability risks and warrants adequate risk mitigation practices by banks, the Governor of the Reserve Bank of India said on Monday. From a report:
> "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. This could amplify systemic risks as failures or disruptions in these systems may cascade across the financial sector, Das added.
>
> India's financial service providers are using AI to enhance customer experience, reduce costs, manage risks and drive growth through chatbots and personalised banking. The growing use of AI introduces new vulnerabilities like increased susceptibility to cyber attacks and data breaches, Das said. AI's "opacity" makes it difficult to audit and interpret algorithms which drive lender's decisions and could potentially lead to "unpredictable consequences in the market," he warned.
[1] https://www.reuters.com/technology/artificial-intelligence/india-cenbank-chief-warns-against-financial-stability-risks-growing-use-ai-2024-10-14/
> "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. This could amplify systemic risks as failures or disruptions in these systems may cascade across the financial sector, Das added.
>
> India's financial service providers are using AI to enhance customer experience, reduce costs, manage risks and drive growth through chatbots and personalised banking. The growing use of AI introduces new vulnerabilities like increased susceptibility to cyber attacks and data breaches, Das said. AI's "opacity" makes it difficult to audit and interpret algorithms which drive lender's decisions and could potentially lead to "unpredictable consequences in the market," he warned.
[1] https://www.reuters.com/technology/artificial-intelligence/india-cenbank-chief-warns-against-financial-stability-risks-growing-use-ai-2024-10-14/
Two sides of the same bitcoin (Score:2)
We already seen lots of crypto bros go to jail, soon all these crypto knowledge makers will face the same fate. It's only a matter of time before an AI "hallucinates" your bank balance.