India's central bank governor warns that AI could pose a threat to financial stability

The Reserve Bank of India (RBI) has expressed concerns about the impact of artificial intelligence on financial stability and has sent out warning signals along with other major monetary authorities.
Shaktikanta Das of the Central Bank of India
Das said at an event in New Delhi that the growing use of AI and machine learning in financial services is creating
Das highlighted the potential financial risks that could arise from the dominance of a few large technology suppliers.
"If these AI systems fail or there is an industry-wide failure, this could lead to systemic risk," it warned.
He noted that while AI can help improve customer service and reduce costs, it can also expose new vulnerabilities, including increased cyber attacks, data breaches, and more.
These include leaks, and the difficulty of auditing opaque AI-based algorithms. Das's concerns echo warnings from other global financial institutions, including the European Central Bank (ECB).
In a July report, the ECB expressed concern about the impact of AI on financial stability. While noting that AI could bring benefits, it also warned that "an excessive concentration of AI suppliers could lead to significant disruptions to the financial sector."
"If such tools were to be widely used in the US, they could increase operational risks, market concentration and externalities," it warned.