BENGALURU: The injection and integration of artificial intelligence (AI) into digital spheres of interaction between institutions and the individual have been rapid and steep, allowing little time for law and policy to catch up. Bengaluru-based experts note finance as a sector that is increasingly moving towards AI-based automation, and with the absence of legal frameworks of accountability, consumers are left to their own devices as it were, making them prone to mishaps involving personal and confidential information.
While the loopholes of accountability that are inherent in an interaction between an individual and an AI platform involving private information are obvious, placing the onus on the individual to enact discretion, the situation gets further complicated when an agency offering financial advice uses AI in its operations. “Consumers do not need to fear every AI-driven financial platform, but they should approach them with informed scepticism. AI can assist with financial information, yet decisions involving savings, debt, insurance, retirement, or investments still require transparency, human accountability, and independent judgment,” said Prof. Madhu Veeraraghavan, pro vice-chancellor for Management, Law, Humanities, and Social Sciences at the Manipal Academy of Higher Education (MAHE).