RBI Governor warns of financial stability risks from AI reliance in global financial services.

RBI Governor Shaktikanta Das has cautioned that the increasing reliance on artificial intelligence (AI) in global financial services may threaten financial stability. He identified concentration risks from a few dominant tech providers, potential vulnerabilities like cyber attacks, and the opaque nature of AI algorithms. Das urged banks, especially in emerging economies, to enhance risk mitigation measures and maintain liquidity to navigate unforeseen challenges.

October 14, 2024
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