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AI asset valuations pose global risk, but cyber threat biggest concern for central banks: RBI Governor

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AI asset valuations pose global risk, but cyber threat biggest concern for central banks: RBI Governor

Business News Tech AI AI asset valuations pose global risk, but cyber threat biggest concern for central banks: RBI Governor

AI asset valuations pose global risk, but cyber threat biggest concern for central banks: RBI Governor

The Governor made the remarks in response to an question at the post-policy press conference, after the RBI flagged elevated AI-related asset valuations among the key downside risks to the global economy.

Elevated valuations of artificial intelligence-related assets pose a downside risk to the global economic outlook , but cyber risks arising from the growing use of AI are a bigger concern for central banks, Reserve Bank of India Governor Sanjay Malhotra said on Wednesday. The Governor made the remarks in response to an question at the post-policy press conference, after the RBI flagged elevated AI-related asset valuations among the key downside risks to the global economy. "With a resolution of the West Asia conflict remaining elusive, significant downside risks to the global outlook remain, including further tightening of global financial conditions, continuing elevated AI-related asset valuations and high public debt," Malhotra had said in his opening remarks during the Monetary Policy Committee meeting.

Asked by ANI whether the RBI's concern was about an AI-driven asset bubble, disruption to the labour market or the broader impact on global financial stability, Malhotra said all these risks were material. "Well, all these risks are material. I think for us as central bankers, the most significant of these is cyber risks," he said. The Governor said the growing use of information technology across financial systems and the increasing interconnection between financial institutions were adding a new dimension to cyber risks from AI.


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