RBI Governor emphasizes removing bias in AI and machine learning.

MUMBAI: Reserve Bank of India (RBI) Governor Shaktikanta Das on Friday called for enhancing the capabilities of artificial intelligence (AI) and machine learning (ML) while addressing ethical considerations and eliminating algorithmic bias. “Under the Reserve Bank's ambitious target towards RBI@100, we aim to develop state-of-the-art systems for high-frequency and real-time data monitoring and analysis,” Das said at the 18th Statistics Day conference organised by the RBI on Friday.

“The focus now is, of course, on enhancing the capabilities of Artificial Intelligence (AI) and Machine Learning (ML) techniques to analyze unstructured text data. In doing so, ethical considerations need to be addressed and bias in algorithms needs to be eliminated,” Das said. He highlighted that statistics is increasingly being used as the preferred tool for making inferences across disciplines. He further noted that the field is evolving.

There is a shift from simply gathering facts to a focus on interpreting data and drawing conclusions, especially considering the level of uncertainty.

He said central banks are making efforts to leverage their vast computing power and growing digital footprint to analyze expectations, sentiment indicators and measures of policy credibility from alternative data sources. The use of alternative and non-traditional data sources proved invaluable during the toughest phases of COVID-19-related lockdowns and restrictions. “Indeed, their usefulness extends beyond the duration of the crisis. Data management systems need to keep up with the use of non-traditional data sources as policy inputs, and in doing so, they need to keep in mind the importance of filtering out noise and capturing signals from high-frequency indicators,” he said.

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