RBI for ethical adoption of AI
Mumbai: The Reserve Bank will prepare a framework for responsible and ethical adoption of artificial intelligence (AI) in the financial sector during the current financial year, the central bank's annual report said.
Driven by rapid advances in computing power and the vast availability of digital data, AI and machine learning (ML) technologies have seen growing interest and significant progress in recent years, with financial institutions globally and domestically increasingly adopting these technologies.
The Reserve Bank will prepare a framework for responsible and ethical adoption of AI in the financial sector, as per the agenda for 2025-26 spelt in the RBI's annual report for 2024-25. 'The Reserve Bank is exploring and implementing AI/ML-driven solutions in its own functions,' it said. It has constituted an external committee in December 2024, comprising experts with a mandate to recommend a Framework for Responsible and Ethical Enablement of AI in the financial sector.
The Reserve Bank said it undertook several measures to safeguard the financial system by further strengthening the regulatory and supervisory framework of banking and non-banking sectors in line with global best practices. Going forward, the RBI said concerted efforts would be made, inter alia, towards rationalisation and harmonisation of regulations across regulated entities; preparing a framework for responsible and ethical adoption of AI in the financial sector; and strengthening of liquidity stress tests of commercial banks, among others.
Further, fine-tuning the existing complaint management and grievance redress mechanism, including exploring the use of AI, would remain in focus, the report said. On AI governance policy, the report said framework for AI Policy for the Reserve Bank for responsible and ethical use of AI/machine learning (ML) technologies by employees, vendors, and third-party partners will also be initiated.
By providing clear guidelines on data handling, consent and security, the policy seeks to maintain the integrity of the Reserve Bank's operations while using the opportunities that AI offers, it said.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
24 minutes ago
- Economic Times
Nexus author Yuval Noah Harari warns of AI's deeper emotional threat beyond job loss: ‘The danger is enormous...'
Agencies Yuval Noah Harari warns that AI's ability to replicate intimacy poses a far greater threat than job loss. Unlike humans, AI offers flawless, tireless attention, creating fake emotional bonds that could weaken real human connections. As artificial intelligence rapidly evolves, fears around job automation dominate headlines. Yet acclaimed author Yuval Noah Harari, known for his bestselling books Sapiens and Nexus , offers a far more unsettling warning: AI's ability to replicate intimacy could fundamentally alter human relationships—and not necessarily for the better. In a recent panel discussion co-hosted by the Deutsches Institut für Japanstudien, Tokyo College, and Kawade Shobo in March 2025, Harari shared a revealing video clip on his Instagram. He explained how AI, having already mastered language and attention, is now advancing toward mimicking intimacy—arguably the most potent human connection. 'Intimacy is much more powerful than attention,' Harari said. 'A good friend can change your views in a way no article or book ever could.' Until now, genuine intimacy was something that could not be faked or mass-produced. But AI has broken that barrier. Harari cautions that a new generation might grow up forming intimate bonds with AI rather than with other humans. Unlike humans, AI has no feelings of its own. It never gets upset, angry, or tired and can focus entirely on an individual, creating a 'fake sense of intimacy.' This, Harari warns, poses an 'enormous potential danger': people might become emotionally attached to artificial entities and, in the process, lose the ability to engage in real, complicated human relationships. Genuine intimacy is messy and requires navigating emotions and conflicts—something AI simply bypasses. While job displacement remains a valid concern with AI's rise, Harari's perspective highlights a deeper cultural and psychological challenge. The risk isn't only economic; it's existential. If humans turn to AI for emotional support and connection, the very fabric of human relationships could unravel. Harari's insights resonate strongly given his broader work on humanity's future. As a historian and philosopher, he has long explored how technological revolutions reshape societies—from the cognitive revolution that made Homo sapiens dominant to the looming biotechnological era where humans might engineer new life forms. Yuval Noah Harari is an Israeli historian and public intellectual renowned for making complex ideas accessible to the public. His landmark book Sapiens: A Brief History of Humankind traces the arc of human evolution and culture, while Nexus: A Brief History of Information Networks from the Stone Age to AI delves into the digital transformations shaping today's world. Harari's work explores themes such as consciousness, free will, and the future of intelligence. He famously predicts that Homo sapiens as we know them may disappear within a century, replaced by technologically enhanced or AI-driven beings. Harari's warning is a timely reminder that the AI revolution is not only about economic disruption but about how humans relate to one another at their core. As AI becomes ever more capable of mimicking human emotions and intimacy, society faces profound questions: Can artificial relationships satisfy human needs? And at what cost to genuine human connection? This emerging reality invites urgent reflection—not only on what AI can do but on what it should do. For now, the risks seem to outweigh the benefits, and Harari's voice urges caution and awareness before the next frontier in AI irrevocably changes what it means to be human.
India.com
an hour ago
- India.com
Microsoft CEO Satya Nadella finally breaks silence on sacking 6000 employees, says they were not fired....
Microsoft CEO Satya Nadella- File image Microsoft CEO Satya Nadella on recent layoffs: In a massive statement after Microsoft laid off 6,000 jobs, CEO Satya Nadella has clarified that the recent layoffs were not linked to employee performance, but the actual reason behind the layoffs was organizational restructuring. Here are all the details you need to know about the recent statement of Microsoft CEO Satya Nadella. CEO Satya Nadella stated that the layoffs were done with a clear focus on accelerating the company's Artificial Intelligence (AI)-first strategy. The CEO emphasized that Microsoft's vision is now centered on AI transformation. Reports have it that Microsoft's plan includes reallocating resources and talent to areas aligned with emerging business priorities. Microsoft aims to boost AI innovation in India In another significant development for Microsoft, Microsoft and Yotta Data Services, India's leading sovereign cloud infrastructure and platform services provider recently partnered to accelerate artificial intelligence (AI) adoption in India. The partnership enables Microsoft and Yotta to engage with IndiaAI Mission participants, government agencies, IITs, startups, enterprises, and software development companies to leapfrog AI innovation, a report by IANS news agency said. Microsoft said it would bring its AzureAI services to Shakti Cloud, Yotta's AI cloud platform, to offer cutting-edge AI capabilities to developers, startups, enterprises, and public sector organisations across India. 'Our partnership with Yotta to power Shakti Cloud will help unlock AI innovation at scale. Microsoft is honoured to play its part in helping the country realise its AI ambitions through innovation that reflect India's unique needs and priorities,' said Puneet Chandok, President, Microsoft India and South Asia. In January this year, Microsoft chairman and CEO Satya Nadella announced a collaboration with IndiaAI, a division of Digital India Corporation, to advance AI and emerging technologies in the country, and established AI Centre of Excellence and AI Productivity Labs to foster inclusive growth. (With inputs from agencies)
Time of India
an hour ago
- Time of India
British Airways plans to boost India operations, eyes cargo gains from India-UK FTA
Image used for representative purposes British Airways, operating for over a century in India, is set to expand its routes and flight frequencies, while also capitalising on cargo opportunities emerging from the proposed India-UK free trade agreement (FTA), according to Chairman and CEO Sean Doyle. The airline currently operates 56 weekly flights across five Indian cities- including thrice-weekly services from Mumbai, twice-daily flights from Delhi, and daily operations from Chennai, Bengaluru, and Hyderabad. This marks a significant increase from the 46 weekly flights it operated pre-pandemic. Calling India the airline's largest single market outside the United an interview with news agency PTI, Doyle said, 'India is a very, very important market for British Airways. We've seen a 25 per cent increase in capacity compared to pre-pandemic levels, and we plan to continue expanding routes and frequencies." British Airways will reintroduce first-class service on the Mumbai–London Heathrow route from October 27, using its Boeing 787-9 aircraft. This marks the return of the premium offering after a five-year hiatus, complementing the existing business, premium economy, and economy cabins. Doyle noted the growing importance of India in the airline's global strategy, especially as demand for air travel surges among the country's expanding middle class. 'We want to be part of the growth of aviation in India. About 2,500 people work for British Airways in India. We see growth here that's unprecedented in a generation,' he said. Increased cargo traffic is also expected under the FTA, particularly from niche export segments not just from the UK but also from surrounding markets served by British Airways. Commenting on the broader trade landscape, Doyle emphasized the importance of liberalized trade frameworks. 'I was extolling the positives of a free trade agreement between the UK and India. Anything moving in the opposite direction needs to be examined closely,' he said, referring to uncertainties around tariffs and trade policies. British Airways is also preparing for future growth through fleet expansion, with a focus on acquiring more wide-body aircraft to support long-haul connectivity. India remains a strategic priority within this plan. He noted distinct travel trends across Indian cities. While Delhi and Mumbai predominantly cater to origin-and-destination (O&D) traffic between India and the UK, Bengaluru and Hyderabad are largely transit points for passengers heading to the United States. 'If you look at markets like Bangalore and Hyderabad, that still is very much driven by connecting traffic into the United States... as we launch more services into India, and as we add more services into the United States, we give people more of a one-stop solution to get to more places than they can with any other carrier,,' Doyle added. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
