Ensuring Responsible AI Innovation: The case for guardrails for AI adoption in BFSI
In today’s rapidly-evolving digital landscape, artificial intelligence (AI) holds immense potential for the banking and financial services industry. From fraud detection and risk assessment to personalised customer experiences, AI could offer a multitude of benefits.
However, to ensure that AI is developed and used responsibly, it is imperative to find a balance between regulation and innovation. There is an urgent need for India to proactively take the lead in AI regulations as many countries globally look towards us for leadership in technology. AI regulations in the form of light-touch guardrails can provide a framework that ensures responsible and ethical AI deployment, safeguards for customer and institutional data privacy, protection of consumers against algorithmic biases and incorrect information, and establishing mechanisms for accountability and transparency. Let’s understand these concerns better.
AI systems can inadvertently perpetuate existing biases present in the data they are trained on. If the training data reflects societal biases, the AI models can learn and amplify these biases, leading to discriminatory outcomes. Biased AI systems can have significant social and economic impacts, particularly in sectors such as lending, and unchecked bias in AI can reinforce inequalities, exacerbate discrimination, and limit opportunities for marginalised communities.
India has worked hard to create anti-discrimination laws, and it is essential that AI systems do not violate these through reliance on biased datasets. So, there is need for a baseline for anti-discrimination and inclusion policies in AI development and deployment. Algorithmic accountability and the right against discrimination must be included in the
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