Finance Minister Nirmala Sitharaman has called on fintech companies to enhance their risk management frameworks to prevent the misuse of artificial intelligence (AI). Speaking at the Global Fintech Fest, she emphasized the need for responsible AI deployment, particularly in financial services, where trust and data privacy are critical.
She highlighted rising global concerns about algorithmic bias, lack of explanation, and potential for fraud in AI-driven processes. Sitharaman urged fintech players to adopt robust governance structures, ensure ethical AI usage, and prioritize consumer protection.
The minister also pointed out that while AI presents immense opportunities for innovation and financial inclusion, unchecked use could lead to reputational and systemic risks. She encouraged collaboration between regulators, financial institutions, and tech innovators to build a secure, transparent, and resilient fintech ecosystem.
The remarks come amid growing scrutiny of AI systems in sensitive sectors such as lending, insurance, and digital payments.
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