On Thursday (April 23), senior executives from public sector banks and other financial institutions met with the Finance Minister to discuss the risks associated with artificial intelligence, particularly its disruptive potential within the financial sector, as reported by sources.
The discussions highlighted concerns regarding cybersecurity threats linked to Anthropic’s new AI model “Mythos,” with worries that such technologies could facilitate the identification and exploitation of software vulnerabilities.
Additionally, sources mentioned that the Reserve Bank of India
(RBI) is collaborating with banks, government entities, and international central banks to evaluate the risks related to AI models like Mythos and their potential effects on the financial ecosystem.
The National Payments Corporation of India (NPCI) is also reportedly seeking early access to Mythos prior to its broader rollout to assess potential risks to the payments framework.
Sources further indicated that these discussions are in preliminary stages, focusing on risk assessment before integrating such models into guidelines for banks’ engagement with AI systems.
Meanwhile, the Department of Financial Services (DFS) provided its initial official commentary on “Mythos,” with Secretary M Nagaraju emphasizing the importance of maintaining a resilient and robust financial system amidst emerging technological changes.
He noted that technology, including AI, is set to play a growing role in the sector, facilitating increased lending through AI-driven underwriting.
Nagaraju remarked that AI should be perceived not just as a disruptor but also as an enabler, stressing the need for close alignment among governments, regulators, and technology providers.
He also emphasized that policy frameworks must be adaptable in addressing risks, including cybersecurity threats and market volatility, to ensure ongoing growth.
In a broader macroeconomic context, he observed that while global challenges have persisted over recent years, India continues to differentiate itself amid uncertainty and is emerging as a leader in digital public infrastructure, with UPI accounting for over 88% of digital payments last year and expanding internationally.
It is noteworthy that “Mythos” has raised concerns among policymakers worldwide, prompting regulators in the US, UK, and Canada to enhance coordination in assessing potential risks from the model and strengthening cybersecurity defenses for banks.
In the US, authorities, including the Treasury and Federal Reserve, have reportedly engaged major Wall Street banks on this issue, encouraging them to test AI tools internally to uncover system vulnerabilities.
Firms like JPMorgan Chase, Goldman Sachs, and Citigroup are among those either evaluating or preparing to test such models in controlled settings.
