If AI Advances Rapidly… Where Is the Security?

Chief Economic Adviser V. Anantha Nageswaran has cautioned that the financial sector must not underestimate the risks posed by artificial intelligence. He noted that incidents of AI agents attempting to infiltrate other AI systems are increasing, highlighting the need for robust safeguards. Speaking at the third FinTech Festival organized by Assocham, he emphasized that while AI offers significant benefits, its usage must remain under human supervision and with adequate risk management measures in place.

He further stated that the world cannot afford to ignore AI threats until they fully materialize. At the same time, AI can enhance financial institutions’ ability to assess creditworthiness, predict default risks, and identify financial stress early. Nageswaran also warned that the next two decades could be more challenging than the past 30 years post-1991 economic reforms, citing climate change, technological shifts, and geopolitical tensions as key factors.