India Cenbank Chief Warns Against Financial Stability Risks From Growing Use of AI (reuters.com) 8
The growing use of AI and machine learning in financial services globally can lead to financial stability risks and warrants adequate risk mitigation practices by banks, the Governor of the Reserve Bank of India said on Monday. From a report: "The heavy reliance of AI can lead to concentration risks, especially when a small number of technology providers dominate the market," Shaktikanta Das said at an event in New Delhi. This could amplify systemic risks as failures or disruptions in these systems may cascade across the financial sector, Das added.
India's financial service providers are using AI to enhance customer experience, reduce costs, manage risks and drive growth through chatbots and personalised banking. The growing use of AI introduces new vulnerabilities like increased susceptibility to cyber attacks and data breaches, Das said. AI's "opacity" makes it difficult to audit and interpret algorithms which drive lender's decisions and could potentially lead to "unpredictable consequences in the market," he warned.
India's financial service providers are using AI to enhance customer experience, reduce costs, manage risks and drive growth through chatbots and personalised banking. The growing use of AI introduces new vulnerabilities like increased susceptibility to cyber attacks and data breaches, Das said. AI's "opacity" makes it difficult to audit and interpret algorithms which drive lender's decisions and could potentially lead to "unpredictable consequences in the market," he warned.
Two sides of the same bitcoin (Score:2)
Re: (Score:2)
Bullshit. Comptete and total. Do you actually believe this, or are you getting paid?
Re: Two sides of the same bitcoin (Score:1)
What regulation can help here? (Score:2)
With all the regulations all but gone, and where HFT is king of most stock markets, which has been run by AI for decades, what regulations do they propose that can help with stability?
Pump and dump is pretty much commonplace. ICOs are still popping up, even though cryptocurrency is pretty much stagnant. Right now, even the AI bubble is petering out, and there isn't anything on the horizon for people to hitch their wagons to.
What regulations would actually bring stability, but not just sock some group (lik
Re: (Score:3)
How about...
Require securities owners to own their securities for a minimum of, say, one month. It's the split-second purchases and sales of the same asset, that lead to instability.
Re: (Score:2)
With all the regulations all but gone, and where HFT is king of most stock markets, which has been run by AI for decades, what regulations do they propose that can help with stability?
Come now, they aren't asking for regulations. They are warning leaders "we're doing risky things to try and make a little more money, make sure you have your checkbook handy for bailing us out when we fuck up."