1 week ago
RBI Deputy Governor Says AI Needs Human Judgment In Banking
RBI Deputy Governor Shirish Chandra Murmu stressed that AI adoption is important for banking.
Murmu said human intervention remains necessary when implementing AI and identifying its loopholes.
He said governance should assess whether institutional capabilities and risk appetites match changing needs.
Murmu warned that separate weaknesses could combine into a larger risk.
He said AI models may perform well overall while failing vulnerable groups, making human judgment essential.
- Who
- Reserve Bank of India Deputy Governor Shirish Chandra Murmu.
- What
- He emphasized the importance of AI in banking while saying human judgment and intervention remain necessary.
- Where
- An event in Mumbai.
- When
- Wednesday.
- Why
- To ensure AI outputs fit the decisions being made, identify loopholes, and detect risks that may affect vulnerable groups or arise from combined weaknesses.
Key facts
- Speaker
- Shirish Chandra Murmu, Deputy Governor of the Reserve Bank of India
- Subject
- Artificial intelligence adoption in banking
- Key condition
- Human intervention remains necessary when implementing AI
- Risk concern
- Separate weaknesses may combine into a larger institutional risk
- Model limitation
- A model that performs well overall may still fail a vulnerable group
- Governance focus
- Assessing institutional capability and risk appetite against changing needs
- Location
- Mumbai
Quotes
Shirish Chandra Murmu
RBI Deputy Governor
“"Its purpose is not to pull governance into day-to-day execution. It is to see where institutional capability or risk appetite is falling behind changing needs, and where separate weaknesses, each individually manageable, might combine into something larger,"”
indianexpress.com
“"A model that performs well overall can still fail a small but already vulnerable group. Intelligence, therefore, demands clarity — about what a technology delivers, what it leaves out, and whether its output fits the decision at hand,"”
indianexpress.com
Sources
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