AI brings risks & opacity, says Sebi chief

New Delhi: Sebi chairman Tuhin Kanta Pandey on Friday flagged the risks posed by artifi-cial intelligence in the financial system and said that regulations must evolve to supervise systems and technology, and manage the boundary between regulat-ed finance and unregulated digital spaces. Pandey said the coming wave of AI, synthetic biology and other technologies would be a “compelling challenge” or “a predicament for humani-ty”. AI offers powerful tools for surveillance and fraud detection, but it also brings risks, opacity, bias, and concentration of technological power. “Regulation must therefore evolve from supervising institutions to super-vising systems and technology. They must address concentration and intercon-nectedness risks, strengthen data governance,” he said.