RBI Flags Concerns Over Financial Risks of AI

The Reserve Bank of India (RBI) is worried about how AI might affect money.

AI systems could make mistakes, like incorrectly flagging transactions as suspicious or missing real fraud.

This can lead to financial problems and damage the reputation of banks.

Also, AI used for credit scores could fail if the data it relies on gets corrupted.

The RBI suggests that if AI systems are not watched closely, they can make more mistakes over time.