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RBI forms panel to regulate AI use in financial sector under 'FREE-AI' initiative

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The Reserve Bank of India has formed a committee to develop the Framework for Responsible and Ethical Enablement of Artificial Intelligence (FREE-AI).
The Reserve Bank of India (RBI) has established a committee to oversee the integration of Artificial Intelligence (AI) and Machine Learning (ML) in the financial sector, as part of its FinTech initiative named "Feasible, Responsible, and Ethical AI" (FREE AI). This panel, led by RBI's Executive Director Ajay Kumar Choudhary, includes experts from various fields to ensure that AI applications in finance are developed responsibly. The committee's objectives include setting guidelines for AI usage, ensuring ethical practices, and addressing potential risks like data privacy and security. This move comes in response to the growing adoption of AI technologies in banking and finance, aiming to foster innovation while maintaining regulatory oversight to protect consumers and maintain financial stability.

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