A Reserve Bank of India committee has recommended a framework for developing AI capabilities in the financial sector, focusing on risk mitigation. The report suggests creating a digital infrastructure, a standing committee, and a fund to incentivize indigenous AI models. The RBI envisions a harmonious financial ecosystem that balances innovation and risk mitigation.

The committee’s report includes 26 recommendations in six categories, such as infrastructure, capacity, policy, governance, protection, and assurance. Key suggestions involve integrating AI with digital platforms like UPI and designing audit frameworks. The committee, led by IIT Bombay’s Pushpak Bhattacharyya, aims to create a responsible and ethical AI framework for the finance sector.

The central bank’s committee on AI regulation aims to strike a balance between societal benefits and risks associated with the technology. The challenge lies in ensuring that society can harness AI’s potential while mitigating its negative impacts. The report emphasizes the importance of responsible and ethical AI enablement in the finance sector.

Read more at Yahoo Finance: India cenbank committee recommends AI framework for finance sector