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Sitharaman calls for stronger AI safeguards in finance, other critical sectors
Sep-15-2026

Finance Minister Nirmala Sitharaman has called for stronger accountability and safeguards around artificial intelligence (AI) as the technology moves into finance and other critical sectors. She warned that regulators and companies must ensure rapid innovation does not create new forms of systemic risks.

She said that AI could make financial decisions and transactions much faster, but it could also cause fraud, cyberattacks, and other failures to spread at unprecedented speed. She stated ‘AI may assist judgment, but responsibility must remain human and institutional’. She noted that the more serious the consequences of an AI-driven decision, the greater the need for review, explanation and appeal.

Further, she said regulators, company boards and senior management must have a clear understanding of how AI is being deployed, which decisions it affects, the data it depends on, and the potential consequences of a system failure. Besides, she added ‘Higher-risk uses must receive higher levels of scrutiny before deployment and throughout their life cycle.’


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