AI Growing Fast, Regulation Must Keep Pace: FM Nirmala Sitharaman

(MENAFN- IANS) New Delhi, Sep 15 (IANS) Finance Minister Nirmala Sitharaman on Monday said that artificial intelligence (AI) is developing rapidly and cannot be seen as a static technology.

FM Sitharaman stressed that as AI evolves in real time, there is a need to remain cautious and ensure that ethics are not ignored.

Speaking at the release of NITI Aayog's report“AI for Viksit Bharat: The Opportunity for Accelerated Economic Growth”, FM Sitharaman said regulation must move just as fast as technology.

“If the technology is on a sprint, then regulation also has to be on a sprint,” the Finance Minister remarked.

The Finance Minister highlighted that the government is holding continuous discussions with Nasscom and other stakeholders in the AI space.

FM Sitharaman said the aim is not just to keep pace with global developments but to take a leadership role in shaping AI adoption responsibly.

“We do not want to be behind, but we also cannot just be at par, we need to have a leadership role, and that's where the effort of the ministry is going," the Finance Minister explained.

FM Sitharaman explained that regulations must strike a balance between encouraging innovation and ensuring responsible use.

“We do not want regulation that literally wipes out technology itself. We want regulations because we want a responsible application,” the Minister added.

FM Sitharaman also pointed to initiatives announced in the Union Budget, such as setting up AI centres for education, agriculture, health, and urban spaces.

AI, FM Sitharaman said, must be used to provide solutions for better cities and improved living conditions.

The finance ministry is also working with the Reserve Bank of India, which is developing a sandbox for testing various AI-based applications.

At the same time, FM Sitharaman cautioned that AI brings challenges, including its potential impact on jobs and society at large.

“While AI can be a powerful tool for progress, it must be managed carefully to ensure India's demographic dividend is not negatively affected,” the Finance Minister added.

“Regulation has to run this race equally as much as technology is running it,” the minister reiterated, underlining the need for responsible growth of AI in India's journey towards 'Viksit Bharat'.

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