Sitharaman flags ‘unprecedented’ AI risks, asks banks to tighten vigilance

New Delhi: Union Finance Minister Nirmala Sitharaman has cautioned Indian banks about emerging threats from advanced artificial intelligence systems, specifically raising concerns over a new model developed by Anthropic.

Speaking to reporters, the minister said India is closely tracking the potential risks associated with Anthropic’s “Mythos AI,” which has attracted global attention for its sophisticated capabilities. She noted that while Indian banks are currently well-prepared to handle technology-related challenges, the rapid evolution of AI demands heightened alertness.

Sitharaman said the Ministry of Electronics and Information Technology (MeitY) is actively engaging with global regulators and governments to better understand the implications of such AI systems and assess their possible impact on India’s banking ecosystem.

Emphasising preparedness, she indicated that existing regulatory and cybersecurity frameworks may need to be upgraded to tackle more complex and evolving threats posed by advanced AI tools. Banks have also been advised to collaborate closely and adopt a coordinated approach to risk management.

The Indian Banks' Association will spearhead consultations among lenders to strengthen sector-wide readiness and address concerns collectively.

Her remarks follow earlier warnings about the “unprecedented” risks linked to the Mythos AI model.

Separately, the finance minister recently highlighted India’s strong macroeconomic position, noting that healthy fiscal indicators and robust foreign exchange reserves provide policy flexibility to the Reserve Bank of India. She said this allows room for continued capital expenditure, potential rate cuts, and targeted support to sectors when needed—benefits stemming from sustained fiscal discipline over the past decade.

With inputs from IANS