“The emerging role of artificial intelligence in the financial ecosystem should reduce uncertainties and expand opportunities for all stakeholders to advance inclusion, maximise efficiency, and strengthen trust,” said J. Swaminathan, Deputy Governor of Reserve Bank of India.

Delivering the 20^th CUB V. Narayanan Memorial Lecture at SASTRA, a deemed university, on Saturday, Mr. Swaminathan laid down a five-point charter of guidelines for full scale AI adoption in the financial and banking sectors.

These include human responsibility, fairness, and explainability, strong data governance, institutional adoption, maturity, and inclusivity by design. These five points ensure fair outcomes, transparency, humane approach, democratisation, and risk prevention, he said.

Speaking on the topic “AI in Finance - what can change and what should not,” Mr. Swaminathan shared valuable insights on customer and data sensitivities, non-isolation of small borrowers, and malicious automation besides highlighting the need for human responsibility and accountability for AI assisted decisions.

“Financial decision making cannot be a back box theory and it requires tremendous institutional responsibility”, he said, according to a SASTRA release.