Rao delivered a speech at the 106th Annual Conference of Indian Economic Association in Delhi, on December 22.

The Reserve Bank of India (RBI) Deputy Governor M Rajeshwar Rao has flagged concerns surrounding financial institutions using artificial intelligence.

Rao said that these concerns are design-specific risks such as biases and robustness issues, others are more traditional and user-specific such as data privacy, cybersecurity, consumer protection and preserving financial stability.

Rao delivered a speech at the 106th Annual Conference of Indian Economic Association in Delhi, on December 22.

Many banks have introduced chatbots on their websites and apps that are used mainly for basic communication and handling customer queries. ICICI Bank’s chatbot, called iPal, guides visitors on the website to service options. HDFC Bank’s Eva chatbot assists website visitors with complaints and other services.

Rao said AI is as good as a the data on which is has been trained and thus inherits the issues, biases and errors in its training data. Human beings accumulate such training data over a lifetime of exposures, experiences, evidences, and upbringing. That makes us capable of coming to different conclusion based on the same data set.