Speaking at a session on ‘Responsible AI for Finance: Balancing Innovation with Financial Stability’, Sankar said, “India too has been a notable participant in this journey. As with all powerful innovations, AI carries a dual narrative. It promises extraordinary efficiency, inclusion and innovation. But if left unattended, it could pose unprecedented threats.”
He stressed that in finance, a sector built on trust, “the margin for error is even narrower” and urged that AI integration be approached “as a matter of profound responsibility.” According to him, AI systems must have “rigorous oversight” and “inherent safety checks” embedded throughout their lifecycle, from conception and data training to real-world application. “Safety by design rather than safety as an after-thought is critical,” he said, warning that retrofitting safeguards later could destabilize markets, payment systems, and consumer confidence.
Sankar pointed to the RBI’s efforts in the space, citing the RBI Innovation Hub’s MuleHunter.ai, an AI-driven solution deployed in about 20 commercial banks to combat mule account fraud. He said, “Unlike traditional rule-based systems, MuleHunter offers greater accuracy with significantly lower false positive rates.”
On AI’s impact on employment, he remarked that whether AI would displace jobs “depends on whether it is like other transformative technologies in history, such as the industrial revolution or the invention of electricity.”
Sankar emphasised, “It is essential to reiterate that AI must remain a force for good, empowering individuals, strengthening institutions and enhancing the resilience of our financial systems.”
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