How does India's financial sector view AI compared to the US?

India's financial services sector views AI as an enhancement rather than a disruptive threat, contrasting with the panic seen in the US market.

What role will human financial advisers play with AI adoption in India?

Human advisers will focus on highly complex areas like estate planning, trust structuring, and cross-border taxation where judgment and relationships are crucial.

What is the expected regulatory approach to AI in Indian financial services?

Regulators like SEBI and RBI are expected to create frameworks for AI-driven advice, emphasizing transparency and suitability assessments.

Home / Business and Economy / AI Fear: India's Financial Sector Poised for Calm Growth

AI Fear: India's Financial Sector Poised for Calm Growth

11 Feb

•

Summary

AI is seen as an enhancement, not a threat to Indian finance.
Human advisers will focus on complex, trust-based financial needs.
Indian regulators will likely ensure transparency in AI-driven advice.

AI Fear: India's Financial Sector Poised for Calm Growth

Recent global market anxiety surrounding artificial intelligence's impact on financial services has not translated into panic within India's financial sector. While US wealth management stocks experienced sharp declines due to AI-powered automation threats, Indian leaders perceive AI as a tool for enhancement.

Experts in India suggest that AI will consolidate investor data and simplify preparatory work for financial advisers. This is expected to bifurcate the advisory sector, with AI platforms serving mass-affluent clients and human advisers focusing on intricate areas like estate planning and cross-border taxation.

Indian regulators, including SEBI and RBI, are anticipated to establish frameworks for AI-driven advice, prioritizing transparency and suitability. This cautious approach ensures that AI boosts productivity and client engagement without displacing professionals, maintaining the industry's reliance on human oversight and accountability.