Source: CoinGeek

The Reserve Bank of India (RBI) has announced the formation of an expert committee to develop an ethical framework for artificial intelligence in the financial sector. This initiative aims to address risks associated with AI, including bias in automated decision-making, data privacy concerns, and the potential misuse of financial technologies.

The committee comprises technology experts, financial regulators, and academics tasked with crafting guidelines that ensure AI applications in banking and finance are fair, transparent, and secure. Key priorities include fostering trust among consumers, mitigating algorithmic biases, and ensuring compliance with global ethical standards.

The framework will also emphasize the importance of AI audits and accountability mechanisms, requiring financial institutions to disclose AI usage and provide human oversight for critical decision-making processes. This aligns with India’s broader strategy to harness AI’s potential while safeguarding public interests.

The RBI’s proactive approach positions India as a leader in ethical AI governance, particularly in the fast-evolving financial technology landscape.