Nirmala Sitharaman Demands Stronger AI Safeguards at Global Fintech Fest

Finance Minister Nirmala Sitharaman called for stronger accountability and transparent safeguards for artificial intelligence during the Global Fintech Fest 2026 in Mumbai. Describing AI as a double-edged sword, Sitharaman warned that while the technology improves fraud detection and financial transactions, it also enables sophisticated cyber-attacks and could manipulate public opinion and electoral outcomes without voters realizing they are being influenced.

Sitharaman argued that responsibility for AI-driven decisions must remain human and institutional, asserting that higher-risk applications require greater scrutiny. She cited the recent resignation of a researcher from Anthropic over fears of self-improving AI as evidence of systemic risks, stating that leaving the risk of rogue AI to society is an unsustainable distribution of risk. She challenged the global AI industry to provide credible assurances that safety measures are keeping pace with technological advancement.

To balance innovation with safety, Sitharaman advocated for soft-touch regulation, citing the European Union AI Act as a precedent for transparency. She proposed a federated industry platform to give the Indian technology sector a collective voice with foreign regulators and emphasized that tech companies must fulfill tax obligations in every jurisdiction where they generate profits.

Regarding financial technology, Sitharaman urged the Reserve Bank of India to accelerate its central bank digital currency pilots. She also noted the Reserve Bank of India's recognition of the Unified Fintech Forum as a self-regulatory organization on September 10.