New Delhi, October 15 (IANS). The efforts of the Central Government to create a National AI Ecosystem will make AI resources accessible to not only the big players in financial services but also the small players. This information was given in a report on Wednesday.
Business consultancy firm Grant Thornton India reports that this change will mean that companies will have to actively integrate their systems with these platforms and provide them with datasets as well as models.
The IndiaAI Mission, AI Fund, DPDP Act and the cybersecurity mandate of CERT-In are creating the infrastructure of compute, datasets, data protection and digital rails that financial institutions can now ride on, the report said.
According to the report, the four structural challenges financial institutions face are data quality, infrastructure gaps, talent shortage and regulatory ambiguity.
The report said that for banks and NBFCs, AI becomes a board-level governance issue, requiring model risk management and fairness programs. The industry should respond by institutionalizing model risk management, including listing AI systems, developing fairness and explainability programs, and integrating incident reporting into existing supervisory channels.
The report emphasizes that national initiatives such as the AI Fund and the IndiaAI Compute Platform will bridge the capacity gap of smaller institutions.
Capital markets must rely on transparency to build trust in AI-based decision making.
The firm has urged insurance companies and fintechs to innovate under supervision.
A latest RBI report suggests that only 20 per cent of regulated entities have adopted some form of AI technology and the technologies used so far are simple rule-based non-learning AI models and moderately complex ML models, with limited adoption of advanced AI models.
The report states that AI is no longer an experimental tool, it is a regulated infrastructure that requires fairness, transparency and governance.
–IANS
SKT/
