RBI’s Framework for Responsible and Ethical Enablement of AI (FREE-AI)
The Reserve Bank of India (RBI) has introduced guidelines for responsible AI use in the financial sector. This framework is centered around seven guiding principles and is supported by multiple recommendations across six key areas.
Guiding Principles
- Trust
- People First
- Innovation
- Fairness
- Accountability
- Explainability
- Resilience
Actionable Recommendations
- Infrastructure: Proposes shared AI resources to reduce entry barriers, particularly for smaller financial institutions.
- Policy and Governance: Encourages governance frameworks for data management, bias detection, and open standards.
- Capacity Building: Emphasizes skill development and resource allocation.
- Protection and Assurance: Focus on data security and ethical safeguards.
Global Context and Precedents
- References to the Monetary Authority of Singapore's “FEAT” principles and the Veritas toolkit.
- Mentions of initiatives by Hong Kong and the UK for AI experimentation and governance.
Focus on Indigenous AI Models
- There is a significant emphasis on developing AI models that cater to India's diverse demographics, avoiding reliance on Western data sets.
Challenges and Opportunities
- Potential risks include reinforcing social biases and eroding trust if AI is not well-governed.
- Successful execution of these guidelines could set global benchmarks, similar to India's digital infrastructure achievements like Aadhaar and UPI.
