Sitharaman Calls for Stronger AI Safeguards Amid Rising Safety Concerns

Finance Minister Nirmala Sitharaman has called for stronger and continuously updated safeguards around artificial intelligence, warning that society cannot be left to bear the risks if AI systems “go rogue”. Speaking at the Global Fintech Fest 2026, she urged the global AI industry to provide greater institutional accountability and credible assurances that safety measures are keeping pace with rapid advances in frontier AI.

Sitharaman described AI as a “double-edged sword”, capable of improving fraud detection while also enabling larger and more sophisticated cyberattacks. She called for built-in checks, human oversight and “circuit breakers” to balance innovation with safety, while warning regulators, boards and senior management not to leave AI governance solely to technology teams. Higher-risk AI applications, she said, should face greater scrutiny throughout their lifecycle.

She also highlighted the challenge of regulating borderless technologies through largely national rules and urged greater coordination among financial, competition, data protection and cybersecurity authorities. Sitharaman said responsible AI adoption was essential because avoiding the technology altogether could weaken institutions and competitiveness. She also backed further progress on India’s digital rupee pilots and suggested a federated platform to give Indian technology companies a stronger collective voice in international regulatory discussions.

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