Swaminathan J highlighted the transformative potential of artificial intelligence (AI) in the financial sector, while cautioning against unchecked adoption, in his speech titled “AI in Finance: What can change, what must never change.”
He noted that AI-driven systems can significantly enhance customer experience by making interactions simpler, faster, and more intuitive. Tools such as multilingual chatbots and voice-based interfaces can improve accessibility, especially for users unfamiliar with formal processes or English-language platforms. AI can also streamline complaint handling and information delivery.
In credit delivery, AI offers the ability to go beyond traditional assessment models that rely heavily on collateral and financial statements. By analysing transaction patterns, repayment behaviour, and business activity, AI can help identify creditworthy borrowers who may otherwise remain excluded—supporting broader financial inclusion.
The technology also plays a critical role in strengthening fraud detection and risk management. With financial systems generating vast volumes of data, AI can detect anomalies, flag suspicious transactions, and enable quicker intervention—particularly in payments, where trust depends on both speed and security.
Additionally, AI has applications in compliance and supervisory processes, improving efficiency and oversight.
However, the Deputy Governor cautioned that AI is a double-edged tool. Without appropriate safeguards, it can amplify existing vulnerabilities and introduce new risks. He emphasised the need for a balanced and responsible approach to AI adoption in finance.
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