RBI issues draft rules on banks' AI safety and accountability
The Reserve Bank of India (RBI) recently released draft rules for how banks and financial institutions should use artificial intelligence.
The big ideas? Banks need a quick-off switch for any AI that goes haywire; humans must stay in the loop for important decisions, and everyone should know when AI is being used.
RBI also wants top-level accountability to make sure automation doesn't get out of hand.
Banks must rate AI by risk
Banks will have to rate their AI tools by risk: think annual checkups and extra controls if an AI is considered high-risk.
Those risky systems cannot go live without board approval.
RBI is also pushing banks to be careful with third-party tech, since relying on global providers comes with supply chain risks.
Plus, banks must explain how their AI works so things stay transparent.
The draft is open for public feedback right now.