AI a double edge sword, capable of even influencing electoral outcomes: FM Sitharaman

Finance Minister Nirmala Sitharaman described artificial intelligence (AI) as a "double-edged sword" at the Global Fintech Fest, highlighting both its potential benefits and risks. She noted that AI could be used to influence public opinion without people realizing it, and expressed concerns that major AI companies were prioritizing competition over responsible development.

Sitharaman also warned of the rapid spread of software errors, fraud, and market shocks due to AI's speed, and the need for upgraded security systems due to the rise of quantum computing. She called for a lighter regulatory approach for the fintech sector to foster innovation, while emphasizing the importance of accountability and oversight.

Sitharaman praised India's younger population for driving innovation and urged the Reserve Bank of India to advance its CBDC pilots, highlighting the synergy between the Reserve Bank and Security and Exchange Board of India (SEBI) in digital currency initiatives.