AI to make banking more inclusive: Microsoft India head

Building a scalable model for leveraging the full potential of data and AI will be central to driving innovation and digital transformation across industries, and particularly in the banking and financial sector, Maheshwari wrote in a foreword to a white paper released by the Institute for Development and Research in Banking Technology (IDRBT).

"We're already seeing more innovation than ever in fintech as people are depending less on physical wallets and using more of digital payment mechanisms," Maheshwari said.

"Financial services organisations have been leveraging AI to enhance customer experience, improve operational efficiency, manage risks, detect frauds, gather data-driven insights, and even streamline regulatory compliance."

Aimed at supporting banks in their AI journey, IDRBT in association with Microsoft has worked out a framework and strategy for the successful adoption of AI for accelerated innovation and growth.

The white paper titled "AI in Banking: A Primer" also stresses the urgent need for banks to assess their AI readiness using an AI maturity model and increase focus on AI strategy, data management, internal digitisation, talent creation and developing safe systems.

Maheshwari said that the "new normal" has accelerated data and AI adoption manifold, and this has clearly shown the benefits of investing in a tech enabled future.

"Driving utilization of Data and AI will also be a catalyst in realizing India's 2025 vision of inclusive development, and a recent Nasscom report shows that it has the potential to deliver $450-500B for the economy by 2025," Maheshwari pointed out.

AI should be defined not just by what technology can do on its own, but by how it can augment and amplify human effort for people to do more, he said.