“Artificial intelligence has moved from the margins to the mainstream. It is reshaping how we design, deliver, and experience financial services, opening doors for efficiency, inclusion, and resilience,” said Shri Ajay Kumar Choudhary, Non-Executive Chairman and Independent Director, National Payments Corporation of India (NPCI), delivering his special keynote address at the 6th Global FinTech Fest (GFF) 2025 in Mumbai.
Speaking on the theme “AI’s Promise and Peril: Building Responsible Intelligence for Inclusive Finance”, Shri Choudhary emphasised that while AI unlocks unprecedented opportunities, it also introduces complex challenges that demand prudent governance and cross-border collaboration.
He noted that investment in AI across banking, insurance, capital markets and payments is
expected to reach nearly USD 100 billion by 2027, with 78% of financial organisations already deploying AI in at least one function, a sharp rise from 55% in 2023. “The industry is no longer debating if AI will matter, it is preparing for how far and how fast it will take us. The real question is whether we harness this power carefully.” he said.
Highlighting two critical dimensions of the AI revolution, Generative AI, which creates and
analyses at scale, and Agentic AI, which can autonomously pursue complex tasks, Shri Choudhary underlined their transformative potential for fraud detection, compliance automation, trading precision and customer engagement. Early studies suggest global banks could see productivity gains of USD 200–340 billion annually through these technologies.
At the same time, he cautioned against AI-driven vulnerabilities, including model bias, explainability gaps, concentration risks and systemic dependencies across infrastructure layers from specialised chips to cloud, data and large foundation models. Global standard-setting bodies like the Basel Committee, IMF and BIS have warned of potential amplification of financial cycles and systemic risks if AI adoption remains unchecked.