Free-ai: How well India assumes its future will form

Copyright © HT Digital Streams Limit all rights reserved. The Reserve Bank of India has compiled a committee for the framework for the responsible and ethical enabling AI (Free-AA) (Reuters). It recommended an approach that enables innovation and reduces the risk. Contradiction as it sounds, it can be done. Over the past six months, I have served in the Reserve Bank of India’s (RBI) committee for the framework for the responsible and ethical enabling AI (Free-AI). It was an enriching experience to put it together, and I’m sure I talk to all members of the committee when I say we are proud of what we have produced. Now that we have submitted our report, I am glad that I can finally write about it. Unlike most artificial intelligence (AI) regulatory frameworks, it is not one that is focused only on risk. On the contrary, we have proposed a dual approach one that enables both innovation and reduces the risk. In my opinion, the weaving of these two is seemingly conflicting sets of objectives that are the latest to this report. Also read: jobs at stake: Legislation can protect employees who face an AI threat to enable the use of AI in the financial sector. We have centered our recommendations around three different pillars: infrastructure, policy and capacity. We suggested that the type of data infrastructure would be needed to build AI models and more commonly encourage the use of AI in the financial sector. There is a lot of information in the financial sector in disconnected silos that, if organized, can be useful for building models and developing AI applications. For that purpose, we recommended an initial investment of £ 5,000 crore, with an extra £ 1,000 crore per year over the next five years. We have also suggested that an AI innovation sandbox has been set up in which RBI-regulated entities, fintech firms and almost anyone interested in applying AI innovations to the financial sector can experiment. Since the General Great Language Models (LLMS) currently available may not meet the specialized needs of our financial sector, we have recommended that sector -specific models develop that can provide the country’s language diversity. To reward innovation in all these areas, we hope that RBI will put in challenges for awards and innovation prices designed to shine a light on significant innovations. Finally, we believe that AI can and should be integrated into India’s digital public infrastructure, so that its reach can be expanded even further than is currently possible. Also read: Artificial Labor Force: Microsoft’s layoffs is a canary in the coal mine for white-collar work under the policy pillar, we believe that the country needs a flexible approach that can adapt to keep up with the evolution of technology. Regulators must periodically judge existing policies and not be afraid to revise and amend them if new technologies claim. We have suggested that RBI forms a permanent committee for multi-stakeholders for this purpose. We were also eager to encourage the use of AI to achieve those who are otherwise excluded or sub -deserved. The report encourages the use of AI to bring borrowers to the formal financial system of the country for the first time and recommends appropriate relaxation of existing regulations to make this possible. If we acknowledge that AI systems are fundamentally likely, we believe it would not be appropriate to apply the binary lens we currently use to determine accountability. Although we must ensure that customers are always protected, our innovation will suffocate if we punish AI developers for every small mistake, our innovation will suffocate. For that purpose, we have recommended a rated approach to supervisory actions, including the first instance of a failure, will not automatically cause the full scope -supervising action, as long as the regulated entity has taken appropriate steps to reduce damage and proactively correct that has been identified. Also read: Rahul Matthan: Technology and law are joined by the hip as they develop together, there is a need for capacity building in the sector, and for that we have recommended measures to improve the capacity of regulated entities as well as the regulators and supervisors responsible for the sector. We have also suggested to put a framework in place to share best practices so that the entire sector can benefit from everyone’s experiences with the use of AI. As important as it is to encourage innovation, we need to make sure that the framework is designed to reduce the risk. For that purpose, we suggested 13 recommendations on three broad pillars: management, protection and insurance. Regulated entities are encouraged to determine AI policy approved by the Council and to ensure that data is protected across the AI life cycle. They must ensure that they have appropriate management frameworks for the AI systems they use. Since most regulated entities already have product approval processes, we ask that they be amended to take into account the use of AI in their products and services. In addition to testing before the release, we also recommend regular red team to ensure that failures can be expected in advance. Also read: Rahul Matthan: Writers must stop worrying and learn to like Genai customers’ protection is extremely important, and regardless of how AI is used by users, regulated entities must ensure that they are protected at all times. This includes appropriate grievance correction measures and awareness campaigns to keep customers well informed while dealing with AI. To ensure the availability of AI, regulated entities are encouraged to implement continuity plans. We have also suggested that the framework of an incident -traveling framework with a good faith approach be created to encourage timely disclosure of significant incidents. AI can be transformational for the development of India and we need to do what it takes to make it happen. It calls for a very different approach to regulation than we currently have – one that encourages responsible innovation and also reduces the risks. This is the free-ai approach. The author is a partner at Trilegal and the author of ‘The Third Way: India’s Revolutionary Approach to Data Governance’. Its X handle is @mathan. Catch all the business news, market news, news reports and latest news updates on Live Mint. Download the Mint News app to get daily market updates. More Topics #rbi #Artic Intelligence Read Next Story