{"id":24760,"date":"2025-06-27T17:08:39","date_gmt":"2025-06-27T11:38:39","guid":{"rendered":"https:\/\/ivaluegroup.com\/en-in\/?p=24760"},"modified":"2025-06-27T18:21:28","modified_gmt":"2025-06-27T12:51:28","slug":"banking-on-ai-why-indias-financial-institutions-are-embracing-ai-technology","status":"publish","type":"post","link":"https:\/\/ivaluegroup.com\/en-in\/resources\/blogs\/banking-on-ai-why-indias-financial-institutions-are-embracing-ai-technology\/","title":{"rendered":"Banking on AI: Why India\u2019s Financial Institutions are Embracing AI Technology"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"24760\" class=\"elementor elementor-24760\" data-elementor-post-type=\"post\">\n\t\t\t\t<div class=\"elementor-element elementor-element-437b6d4 e-flex e-con-boxed e-con e-parent\" data-id=\"437b6d4\" data-element_type=\"container\" data-core-v316-plus=\"true\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-ef1a14d elementor-widget elementor-widget-heading\" data-id=\"ef1a14d\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.20.0 - 26-03-2024 *\/\n.elementor-heading-title{padding:0;margin:0;line-height:1}.elementor-widget-heading .elementor-heading-title[class*=elementor-size-]>a{color:inherit;font-size:inherit;line-height:inherit}.elementor-widget-heading .elementor-heading-title.elementor-size-small{font-size:15px}.elementor-widget-heading .elementor-heading-title.elementor-size-medium{font-size:19px}.elementor-widget-heading .elementor-heading-title.elementor-size-large{font-size:29px}.elementor-widget-heading .elementor-heading-title.elementor-size-xl{font-size:39px}.elementor-widget-heading .elementor-heading-title.elementor-size-xxl{font-size:59px}<\/style><h2 class=\"elementor-heading-title elementor-size-default\">Why AI is Transforming India\u2019s Banking Sector<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-d7db9c0 e-flex e-con-boxed e-con e-parent\" data-id=\"d7db9c0\" data-element_type=\"container\" data-core-v316-plus=\"true\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-a2ff989 elementor-widget elementor-widget-text-editor\" data-id=\"a2ff989\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.20.0 - 26-03-2024 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p><span style=\"color: #000000;\">While AI as a concept has been around for quite a while, the emergence of generative AI in the past decade has seen various industries transformed because of the multitude of benefits (efficiency, cost savings, new products &amp; services, new revenue streams) it can potentially bring.<\/span><\/p><p><span style=\"color: #000000;\">This holds especially true for India\u2019s banking industry. According to a recent EY India survey, 78% of financial institutions are currently implementing or planning GenAI integration. Recent industry examples include iPal, an omnichannel bot fielded by ICICI to handle general banking queries from customers and ILA, an interactive live assistant from SBI Cards that aids customers through the process of applying for new credit cards.\u00a0<\/span><\/p><p><span style=\"color: #000000;\">This is becoming an industry-wide trend &#8211; while private sector banks have been more proactive in adopting AI, public sector banks are also increasingly recognizing its potential. According to RBI\u2019s comparative analysis of annual reports from 2015\u201316 to 2022\u201323, public sector banks increased the use of AI-related terminology more than threefold, while private banks recorded a sixfold rise. Beyond customer service, AI is reshaping core banking functions, from credit risk assessment and financial crime detection to data modelling, compliance, and cybersecurity.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-cfa2157 e-flex e-con-boxed e-con e-parent\" data-id=\"cfa2157\" data-element_type=\"container\" data-core-v316-plus=\"true\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-38c1734 elementor-widget elementor-widget-image\" data-id=\"38c1734\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.20.0 - 26-03-2024 *\/\n.elementor-widget-image{text-align:center}.elementor-widget-image a{display:inline-block}.elementor-widget-image a img[src$=\".svg\"]{width:48px}.elementor-widget-image img{vertical-align:middle;display:inline-block}<\/style>\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"768\" height=\"656\" src=\"https:\/\/ivaluegroup.com\/en-in\/wp-content\/uploads\/sites\/2\/2025\/06\/AI-in-BFSI-Use-Cases-768x656.png\" class=\"attachment-medium_large size-medium_large wp-image-24761\" alt=\"\" srcset=\"https:\/\/ivaluegroup.com\/en-in\/wp-content\/uploads\/sites\/2\/2025\/06\/AI-in-BFSI-Use-Cases-768x656.png 768w, https:\/\/ivaluegroup.com\/en-in\/wp-content\/uploads\/sites\/2\/2025\/06\/AI-in-BFSI-Use-Cases-300x256.png 300w, https:\/\/ivaluegroup.com\/en-in\/wp-content\/uploads\/sites\/2\/2025\/06\/AI-in-BFSI-Use-Cases-1024x875.png 1024w, https:\/\/ivaluegroup.com\/en-in\/wp-content\/uploads\/sites\/2\/2025\/06\/AI-in-BFSI-Use-Cases-1536x1312.png 1536w, https:\/\/ivaluegroup.com\/en-in\/wp-content\/uploads\/sites\/2\/2025\/06\/AI-in-BFSI-Use-Cases-24x20.png 24w, https:\/\/ivaluegroup.com\/en-in\/wp-content\/uploads\/sites\/2\/2025\/06\/AI-in-BFSI-Use-Cases-36x31.png 36w, https:\/\/ivaluegroup.com\/en-in\/wp-content\/uploads\/sites\/2\/2025\/06\/AI-in-BFSI-Use-Cases-48x41.png 48w, https:\/\/ivaluegroup.com\/en-in\/wp-content\/uploads\/sites\/2\/2025\/06\/AI-in-BFSI-Use-Cases.png 2043w\" sizes=\"(max-width: 768px) 100vw, 768px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-c49129e e-flex e-con-boxed e-con e-parent\" data-id=\"c49129e\" data-element_type=\"container\" data-core-v316-plus=\"true\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-22c147e elementor-widget elementor-widget-heading\" data-id=\"22c147e\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Private vs Public Sector AI Adoption Trends<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-75f095c e-flex e-con-boxed e-con e-parent\" data-id=\"75f095c\" data-element_type=\"container\" data-core-v316-plus=\"true\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-e77e444 elementor-widget elementor-widget-text-editor\" data-id=\"e77e444\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"color: #000000;\">The business benefits of adopting AI can be considerable. However, the risks of embedding these relatively new technologies into existing systems are often not considered at the outset. If that is the case, businesses may find themselves vulnerable to new challenges that they do not yet know how to deal with. There are several novel risks that come with AI integration:<\/span><\/p><ul><li><span style=\"color: #000000;\"><b>Black-box nature<\/b>: Particularly with deep learning models, it is sometimes challenging to understand the internal workings and decision-making processes of AI models. This \u2018black-box\u2019 nature makes it difficult to assess the system\u2019s reliability and could lead to outcomes like inherent bias against particular groups of users, intellectual property infringement concerns from model usage of Internet data and privacy concerns from potential unauthorised disclosure of sensitive personal data.<\/span><\/li><li><span style=\"color: #000000;\"><strong>Risk of inadequate human oversight<\/strong>: Due to this black-box nature, it can lead to over-reliance on these automated systems and difficulties for banks to intervene effectively when required. This creates a compliance challenge especially if AI is processing sensitive customer data, as DPDPA has clear data usage policies for fiduciaries to follow.<\/span><\/li><li><span style=\"color: #000000;\"><strong>Third-party risks<\/strong>: Banks often work with many different vendors, each with different kinds of AI potentially embedded in their systems. Failure of a single model or provider could disrupt the entire banking operation.<\/span><\/li><li><span style=\"color: #000000;\"><strong>Malicious AI<\/strong>: The harsh reality is, as organizations move towards adopting AI, the same applies for cyberattackers around the world. By having AI in their arsenal, they can destabilise banks through tactics like identity fraud, rogue trading and market manipulation.<\/span><\/li><\/ul>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-8eaa20f e-flex e-con-boxed e-con e-parent\" data-id=\"8eaa20f\" data-element_type=\"container\" data-core-v316-plus=\"true\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-35ed195 elementor-widget elementor-widget-heading\" data-id=\"35ed195\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">The Cybersecurity Risks of Unchecked AI Integration<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-1597573 e-flex e-con-boxed e-con e-parent\" data-id=\"1597573\" data-element_type=\"container\" data-core-v316-plus=\"true\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-3bc1c52 elementor-widget elementor-widget-text-editor\" data-id=\"3bc1c52\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"color: #000000;\">AI has simultaneously increased attack frequency and complexity, while lowering the barriers to entry for less skilled attackers. Indian banks are bearing the brunt of this increased frequency &#8211; according to Check Point\u2019s recent Threat Intelligence Report, banking &amp; financial institutions in India experienced an average of 2,525 cyberattacks in the last 6 months of 2024, a number significantly higher than the global average of 1,674 per organization. Diversification of attacks through AI is the key reason for this boom:<\/span><\/p>\n<ul>\n<li><span style=\"color: #000000;\">They can elevate and accelerate phishing campaigns through seemingly realistic approaches that can target hundreds of people at once.<\/span><\/li>\n<li><span style=\"color: #000000;\">They can conduct successful reconnaissance of your system structure for potential areas to inject malware, ransomware and other complex cyberattacks.&nbsp;<\/span><\/li>\n<li><span style=\"color: #000000;\">If AI integration is not done properly, it could lead to many zero-days in your systems that attackers could potentially exploit.<\/span><\/li>\n<li><span style=\"color: #000000;\">Finally, attacks could be targeted towards compromising AI systems through measures like data poisoning attacks. For banks, this could lead to manipulation of the algorithms used for credit scoring or fraud detection. By jeopardizing system integrity through these tactics, institutions could face significant financial losses &amp; reputational damage as a result.<\/span><\/li><\/ul>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-8d783e9 e-flex e-con-boxed e-con e-parent\" data-id=\"8d783e9\" data-element_type=\"container\" data-core-v316-plus=\"true\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-df2ecfd elementor-widget elementor-widget-heading\" data-id=\"df2ecfd\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Four Steps to Align AI with Cybersecurity in BFSI<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-9deb727 e-flex e-con-boxed e-con e-parent\" data-id=\"9deb727\" data-element_type=\"container\" data-core-v316-plus=\"true\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-0edce9d elementor-widget elementor-widget-text-editor\" data-id=\"0edce9d\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"color: #000000;\">The beauty of AI is that while cybersecurity measures could be tailored towards protecting it, AI itself could prove to be a major weapon in your cybersecurity strategy. But from where do you start creating this symbiosis?\u00a0<\/span><\/p><p><span style=\"color: #000000;\">Here are 4 steps to helping you achieve this crucial balance.\u00a0<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-13b781a e-flex e-con-boxed e-con e-parent\" data-id=\"13b781a\" data-element_type=\"container\" data-core-v316-plus=\"true\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-8361b0b elementor-widget elementor-widget-heading\" data-id=\"8361b0b\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Step 1: Secure AI Development and Deployment<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-01758ca e-flex e-con-boxed e-con e-parent\" data-id=\"01758ca\" data-element_type=\"container\" data-core-v316-plus=\"true\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-f9ca905 elementor-widget elementor-widget-text-editor\" data-id=\"f9ca905\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"color: #000000;\">The sync between AI and cybersecurity starts with identifying where you currently are. Either you have zero presence of AI in your systems, which requires a ground up approach to identifying risks and rewards. The more likely option is that AI tech is already implemented in your organization, and you need to assess how to manage security retroactively. Here are some scenarios in the AI adoption cycle that your company could find itself in:<\/span><\/p><table class=\"MsoNormalTable\" style=\"border-collapse: collapse; mso-yfti-tbllook: 1184;\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\"><tbody><tr><td style=\"border-width: 1pt; border-color: black; padding: 5pt;\" valign=\"top\"><p class=\"MsoNormal\"><span style=\"color: #000000;\"><b>Scenario<\/b><\/span><\/p><\/td><td style=\"border-top-width: 1pt; border-right-width: 1pt; border-bottom-width: 1pt; border-top-color: black; border-right-color: black; border-bottom-color: black; border-left: none; padding: 5pt;\" valign=\"top\"><p class=\"MsoNormal\"><span style=\"color: #000000;\"><b>Risks Associated<\/b><\/span><\/p><\/td><\/tr><tr><td style=\"border-right-width: 1pt; border-bottom-width: 1pt; border-left-width: 1pt; border-right-color: black; border-bottom-color: black; border-left-color: black; border-top: none; padding: 5pt;\" valign=\"top\"><p class=\"MsoNormal\"><span style=\"color: #000000;\">Unconscious use of AI through product features in existing outsourced tools (ERP, HR, etc.)<\/span><\/p><\/td><td style=\"border-top: none; border-left: none; border-bottom-width: 1pt; border-bottom-color: black; border-right-width: 1pt; border-right-color: black; padding: 5pt;\" valign=\"top\"><ul style=\"margin-top: 0cm;\" type=\"disc\"><li class=\"MsoNormal\"><span style=\"color: #000000;\">Introduction of shadow AI\u00a0<\/span><\/li><li class=\"MsoNormal\"><span style=\"color: #000000;\">If unaccounted &amp; unmonitored, it can be a backdoor vulnerability that attackers exploit<\/span><\/li><\/ul><\/td><\/tr><tr><td style=\"border-right-width: 1pt; border-bottom-width: 1pt; border-left-width: 1pt; border-right-color: black; border-bottom-color: black; border-left-color: black; border-top: none; padding: 5pt;\" valign=\"top\"><p class=\"MsoNormal\"><span style=\"color: #000000;\">Known usage of AI systems &amp; models by your third-party vendors<\/span><\/p><\/td><td style=\"border-top: none; border-left: none; border-bottom-width: 1pt; border-bottom-color: black; border-right-width: 1pt; border-right-color: black; padding: 5pt;\" valign=\"top\"><ul style=\"margin-top: 0cm;\" type=\"disc\"><li class=\"MsoNormal\"><span style=\"color: #000000;\">Level of cybersecurity you strive for may not extend to them, leading to potential supply chain attacks that destabilise your business<\/span><\/li><\/ul><\/td><\/tr><tr><td style=\"border-right-width: 1pt; border-bottom-width: 1pt; border-left-width: 1pt; border-right-color: black; border-bottom-color: black; border-left-color: black; border-top: none; padding: 5pt;\" valign=\"top\"><p class=\"MsoNormal\"><span style=\"color: #000000;\">Your teams have started the process of developing internal AI tools<\/span><\/p><\/td><td style=\"border-top: none; border-left: none; border-bottom-width: 1pt; border-bottom-color: black; border-right-width: 1pt; border-right-color: black; padding: 5pt;\" valign=\"top\"><ul style=\"margin-top: 0cm;\" type=\"disc\"><li class=\"MsoNormal\"><span style=\"color: #000000;\">Black-box nature amplified if checks not in place<\/span><\/li><li class=\"MsoNormal\"><span style=\"color: #000000;\">More zero-day vulnerabilities if security not considered in design stage<\/span><\/li><\/ul><\/td><\/tr><tr><td style=\"border-right-width: 1pt; border-bottom-width: 1pt; border-left-width: 1pt; border-right-color: black; border-bottom-color: black; border-left-color: black; border-top: none; padding: 5pt;\" valign=\"top\"><p class=\"MsoNormal\"><span style=\"color: #000000;\">You are in the experimentation &amp; piloting stage when it comes to integrating AI<\/span><\/p><\/td><td style=\"border-top: none; border-left: none; border-bottom-width: 1pt; border-bottom-color: black; border-right-width: 1pt; border-right-color: black; padding: 5pt;\" valign=\"top\"><ul style=\"margin-top: 0cm;\" type=\"disc\"><li class=\"MsoNormal\"><span style=\"color: #000000;\">Lack of system testing &amp; user training can lead to limited AI explainability<\/span><\/li><li class=\"MsoNormal\"><span style=\"color: #000000;\">Experiments becoming embedded in live business operations without proper risk assessment<\/span><\/li><\/ul><\/td><\/tr><tr><td style=\"border-right-width: 1pt; border-bottom-width: 1pt; border-left-width: 1pt; border-right-color: black; border-bottom-color: black; border-left-color: black; border-top: none; padding: 5pt;\" valign=\"top\"><p class=\"MsoNormal\"><span style=\"color: #000000;\">You are in the process of rolling out &amp; integrating AI systems into live operations<\/span><\/p><\/td><td style=\"border-top: none; border-left: none; border-bottom-width: 1pt; border-bottom-color: black; border-right-width: 1pt; border-right-color: black; padding: 5pt;\" valign=\"top\"><ul style=\"margin-top: 0cm;\" type=\"disc\"><li class=\"MsoNormal\"><span style=\"color: #000000;\">Weak implementation of controls once taken live<\/span><\/li><li class=\"MsoNormal\"><span style=\"color: #000000;\">Inadequate discipline around transition from experimentation to operational use, which could prove fatal for mission-critical applications<\/span><\/li><\/ul><\/td><\/tr><tr><td style=\"border-right-width: 1pt; border-bottom-width: 1pt; border-left-width: 1pt; border-right-color: black; border-bottom-color: black; border-left-color: black; border-top: none; padding: 5pt;\" valign=\"top\"><p class=\"MsoNormal\"><span style=\"color: #000000;\">You have multiple, disparate AI projects across your organization<\/span><\/p><\/td><td style=\"border-top: none; border-left: none; border-bottom-width: 1pt; border-bottom-color: black; border-right-width: 1pt; border-right-color: black; padding: 5pt;\" valign=\"top\"><ul style=\"margin-top: 0cm;\" type=\"disc\"><li class=\"MsoNormal\"><span style=\"color: #000000;\">Lack of complete oversight due to coordinated process not being maintained<\/span><\/li><li class=\"MsoNormal\"><span style=\"color: #000000;\">Misalignment of business risk for all these projects<\/span><\/li><\/ul><\/td><\/tr><\/tbody><\/table>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-151d4dc e-flex e-con-boxed e-con e-parent\" data-id=\"151d4dc\" data-element_type=\"container\" data-core-v316-plus=\"true\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-112be35 elementor-widget elementor-widget-heading\" data-id=\"112be35\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Step 2: Strengthen Vendor and Data Governance<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-054a7cd e-flex e-con-boxed e-con e-parent\" data-id=\"054a7cd\" data-element_type=\"container\" data-core-v316-plus=\"true\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-4b41bc6 elementor-widget elementor-widget-text-editor\" data-id=\"4b41bc6\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"color: #000000;\">Deciding whether or not to proceed with an AI project is a process that involves accounting for business impact, feasibility and risk. There are various ways attackers could damage your organization, depending on where you decide to deploy AI:<\/span><\/p><table class=\"MsoNormalTable\" style=\"border-collapse: collapse; mso-yfti-tbllook: 1184;\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\"><tbody><tr><td style=\"border-width: 1pt; border-color: black; padding: 5pt;\" valign=\"top\"><p class=\"MsoNormal\"><span style=\"color: #000000;\"><b>Functions<\/b><\/span><\/p><\/td><td style=\"border-top-width: 1pt; border-right-width: 1pt; border-bottom-width: 1pt; border-top-color: black; border-right-color: black; border-bottom-color: black; border-left: none; padding: 5pt;\" valign=\"top\"><p class=\"MsoNormal\"><span style=\"color: #000000;\"><b>Potential Attacks<\/b><\/span><\/p><\/td><\/tr><tr><td style=\"border-right-width: 1pt; border-bottom-width: 1pt; border-left-width: 1pt; border-right-color: black; border-bottom-color: black; border-left-color: black; border-top: none; padding: 5pt;\" valign=\"top\"><p class=\"MsoNormal\"><span style=\"color: #000000;\">AI Models<\/span><\/p><\/td><td style=\"border-top: none; border-left: none; border-bottom-width: 1pt; border-bottom-color: black; border-right-width: 1pt; border-right-color: black; padding: 5pt;\" valign=\"top\"><ul style=\"margin-top: 0cm;\" type=\"disc\"><li class=\"MsoNormal\"><span style=\"color: #000000;\">Alteration of model code<\/span><\/li><li class=\"MsoNormal\"><span style=\"color: #000000;\">Backdoor vulnerability insertion<\/span><\/li><li class=\"MsoNormal\"><span style=\"color: #000000;\">Compromise of development environment<\/span><\/li><\/ul><\/td><\/tr><tr><td style=\"border-right-width: 1pt; border-bottom-width: 1pt; border-left-width: 1pt; border-right-color: black; border-bottom-color: black; border-left-color: black; border-top: none; padding: 5pt;\" valign=\"top\"><p class=\"MsoNormal\"><span style=\"color: #000000;\">AI Model Inputs<\/span><\/p><\/td><td style=\"border-top: none; border-left: none; border-bottom-width: 1pt; border-bottom-color: black; border-right-width: 1pt; border-right-color: black; padding: 5pt;\" valign=\"top\"><ul style=\"margin-top: 0cm;\" type=\"disc\"><li class=\"MsoNormal\"><span style=\"color: #000000;\">Prompt injection, model evasion &amp; jailbreaking<\/span><\/li><\/ul><\/td><\/tr><tr><td style=\"border-right-width: 1pt; border-bottom-width: 1pt; border-left-width: 1pt; border-right-color: black; border-bottom-color: black; border-left-color: black; border-top: none; padding: 5pt;\" valign=\"top\"><p class=\"MsoNormal\"><span style=\"color: #000000;\">AI Model Outputs<\/span><\/p><\/td><td style=\"border-top: none; border-left: none; border-bottom-width: 1pt; border-bottom-color: black; border-right-width: 1pt; border-right-color: black; padding: 5pt;\" valign=\"top\"><ul style=\"margin-top: 0cm;\" type=\"disc\"><li class=\"MsoNormal\"><span style=\"color: #000000;\">Post-output data manipulation &amp; leakage<\/span><\/li><li class=\"MsoNormal\"><span style=\"color: #000000;\">Prevention of output data reaching business apps<\/span><\/li><\/ul><\/td><\/tr><tr><td style=\"border-right-width: 1pt; border-bottom-width: 1pt; border-left-width: 1pt; border-right-color: black; border-bottom-color: black; border-left-color: black; border-top: none; padding: 5pt;\" valign=\"top\"><p class=\"MsoNormal\"><span style=\"color: #000000;\">AI Model Training<\/span><\/p><\/td><td style=\"border-top: none; border-left: none; border-bottom-width: 1pt; border-bottom-color: black; border-right-width: 1pt; border-right-color: black; padding: 5pt;\" valign=\"top\"><ul style=\"margin-top: 0cm;\" type=\"disc\"><li class=\"MsoNormal\"><span style=\"color: #000000;\">Data poisoning that compromising the training environment<\/span><\/li><\/ul><\/td><\/tr><tr><td style=\"border-right-width: 1pt; border-bottom-width: 1pt; border-left-width: 1pt; border-right-color: black; border-bottom-color: black; border-left-color: black; border-top: none; padding: 5pt;\" valign=\"top\"><p class=\"MsoNormal\"><span style=\"color: #000000;\">Monitoring &amp; Logging<\/span><\/p><\/td><td style=\"border-top: none; border-left: none; border-bottom-width: 1pt; border-bottom-color: black; border-right-width: 1pt; border-right-color: black; padding: 5pt;\" valign=\"top\"><ul style=\"margin-top: 0cm;\" type=\"disc\"><li class=\"MsoNormal\"><span style=\"color: #000000;\">Data leakage<\/span><\/li><li class=\"MsoNormal\"><span style=\"color: #000000;\">Destabilising the integrity of monitoring tools<\/span><\/li><li class=\"MsoNormal\"><span style=\"color: #000000;\">Access compromise leading to lateral movement of attackers<\/span><\/li><\/ul><\/td><\/tr><tr><td style=\"border-right-width: 1pt; border-bottom-width: 1pt; border-left-width: 1pt; border-right-color: black; border-bottom-color: black; border-left-color: black; border-top: none; padding: 5pt;\" valign=\"top\"><p class=\"MsoNormal\"><span style=\"color: #000000;\">Directly supporting AI infrastructure<\/span><\/p><\/td><td style=\"border-top: none; border-left: none; border-bottom-width: 1pt; border-bottom-color: black; border-right-width: 1pt; border-right-color: black; padding: 5pt;\" valign=\"top\"><ul style=\"margin-top: 0cm;\" type=\"disc\"><li class=\"MsoNormal\"><span style=\"color: #000000;\">Leakage of data in storage, leading to data poisoning<\/span><\/li><li class=\"MsoNormal\"><span style=\"color: #000000;\">Way in through unsecured underlying hardware, software &amp; OS<\/span><\/li><li class=\"MsoNormal\"><span style=\"color: #000000;\">API data compromise<\/span><\/li><\/ul><\/td><\/tr><\/tbody><\/table>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-6ef54c5 e-flex e-con-boxed e-con e-parent\" data-id=\"6ef54c5\" data-element_type=\"container\" data-core-v316-plus=\"true\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-475fa5e elementor-widget elementor-widget-heading\" data-id=\"475fa5e\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Step 3: Build Cross-Functional AI Risk Teams<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-e237f6e e-flex e-con-boxed e-con e-parent\" data-id=\"e237f6e\" data-element_type=\"container\" data-core-v316-plus=\"true\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-0cdaf87 elementor-widget elementor-widget-text-editor\" data-id=\"0cdaf87\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"color: #000000;\">Once you have decided to move forward, you must combine pre-deployment security measures being placed at the outset (<b>\u2018shift left\u2019<\/b>) with post-deployment measures that ensure resilience &amp; recovery of systems in use (\u2018<b>expand right\u2019<\/b>). Here are some examples of best-in-class practices for each strategy:<br \/><\/span><\/p><table width=\"624\"><tbody><tr><td><p><span style=\"color: #000000;\"><strong>Shift Left<\/strong><\/span><\/p><\/td><td><p><span style=\"color: #000000;\"><strong>Expand Right<\/strong><\/span><\/p><\/td><\/tr><tr><td><p><span style=\"color: #000000;\"><strong>Data management protocols<\/strong> to safeguard sensitive data and prevent collection of unnecessary data<\/span><\/p><\/td><td><p><span style=\"color: #000000;\"><strong>Secure access control<\/strong> for data protection in the form of phishing-resistant MFA or strong PAM<\/span><\/p><\/td><\/tr><tr><td><p><span style=\"color: #000000;\">Embedded <strong>alerting &amp; monitoring <\/strong>mechanisms that set baselines for user &amp; system behavior, so that immediate alerts can be generated if there is any deviation from these parameters<\/span><\/p><\/td><td><p><span style=\"color: #000000;\">End-to-end <strong>incident response programs<\/strong> that can bring immediate action whenever an incident occurs &#8211; AI can be used for monitoring these systems and providing more accurate threat detection<\/span><\/p><\/td><\/tr><tr><td><p><span style=\"color: #000000;\">Setting unique identifiers to effortlessly <strong>classify<\/strong> all the data involved<\/span><\/p><\/td><td><p><span style=\"color: #000000;\">Having security <strong>governance<\/strong> measures in place to monitor all <strong>third-parties<\/strong><\/span><\/p><\/td><\/tr><tr><td><p><span style=\"color: #000000;\">Having a <strong>backup architecture<\/strong> that promotes instant recovery in the case of an incident<\/span><\/p><\/td><td><p><span style=\"color: #000000;\"><strong>Training of staff<\/strong> to determine what kind of data should be shared with these models<\/span><\/p><\/td><\/tr><\/tbody><\/table>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-379fab9 e-flex e-con-boxed e-con e-parent\" data-id=\"379fab9\" data-element_type=\"container\" data-core-v316-plus=\"true\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-8ff0be5 elementor-widget elementor-widget-heading\" data-id=\"8ff0be5\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Step 4: Align with India\u2019s Regulatory Expectations<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-631aca2 e-flex e-con-boxed e-con e-parent\" data-id=\"631aca2\" data-element_type=\"container\" data-core-v316-plus=\"true\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-a9c0986 elementor-widget elementor-widget-text-editor\" data-id=\"a9c0986\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"color: #000000;\">AI is at a stage where it is evolving on a daily basis. Therefore, shift left, expand right should not be a one-time exercise but rather a continuous process that changes based on the AI landscape. To create this culture, your whole organization must be in sync with these best practices:<\/span><\/p>\n<ul>\n<li><span style=\"color: #000000;\">A cross-disciplinary AI risk function must be formulated with members from your legal, compliance, HR, ethics and front-line business teams<\/span><\/li>\n<li><span style=\"color: #000000;\">A running inventory of AI applications must be maintained that helps you access how &amp; where AI is being used in your organization at any given point, including whether it is involved in mission-critical apps<\/span><\/li>\n<li><span style=\"color: #000000;\">Adequate discipline must be maintained when transitioning from AI experimentation to operational use<\/span><\/li>\n<li><span style=\"color: #000000;\">Information governance policies should be established, that dictate what kind of data should be shared with AI models<\/span><\/li>\n<li><span style=\"color: #000000;\">Complement of tech, people &amp; process-based controls to maintain AI compliance with India\u2019s regulatory environment<\/span><\/li>\n<\/ul>\n<p><span style=\"color: #000000;\">As Indian banks race to integrate AI, those who balance innovation with proactive cybersecurity will gain more than protection, they\u2019ll earn trust. Leading financial institutions are already embedding security from design to deployment.&nbsp;<\/span><\/p><p><span style=\"color: #000000;\">Is your AI strategy secure enough to scale?<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Why AI is Transforming India\u2019s Banking Sector While AI as a concept has been around for quite a while, the emergence of generative AI in the past decade has seen various industries transformed because of the multitude of benefits (efficiency, cost savings, new products &amp; services, new revenue streams) it can potentially bring. This holds &hellip;<\/p>\n<p class=\"read-more\"> <a class=\"\" href=\"https:\/\/ivaluegroup.com\/en-in\/resources\/blogs\/banking-on-ai-why-indias-financial-institutions-are-embracing-ai-technology\/\"> <span class=\"screen-reader-text\">Banking on AI: Why India\u2019s Financial Institutions are Embracing AI Technology<\/span> Read More \u00bb<\/a><\/p>\n","protected":false},"author":1,"featured_media":20195,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"default","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"default","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","footnotes":"","_links_to":"","_links_to_target":""},"categories":[131],"tags":[],"whitepapers":[],"case_studies":[],"acf":[],"_links":{"self":[{"href":"https:\/\/ivaluegroup.com\/en-in\/wp-json\/wp\/v2\/posts\/24760"}],"collection":[{"href":"https:\/\/ivaluegroup.com\/en-in\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ivaluegroup.com\/en-in\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ivaluegroup.com\/en-in\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ivaluegroup.com\/en-in\/wp-json\/wp\/v2\/comments?post=24760"}],"version-history":[{"count":7,"href":"https:\/\/ivaluegroup.com\/en-in\/wp-json\/wp\/v2\/posts\/24760\/revisions"}],"predecessor-version":[{"id":24778,"href":"https:\/\/ivaluegroup.com\/en-in\/wp-json\/wp\/v2\/posts\/24760\/revisions\/24778"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ivaluegroup.com\/en-in\/wp-json\/wp\/v2\/media\/20195"}],"wp:attachment":[{"href":"https:\/\/ivaluegroup.com\/en-in\/wp-json\/wp\/v2\/media?parent=24760"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ivaluegroup.com\/en-in\/wp-json\/wp\/v2\/categories?post=24760"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ivaluegroup.com\/en-in\/wp-json\/wp\/v2\/tags?post=24760"},{"taxonomy":"whitepapers","embeddable":true,"href":"https:\/\/ivaluegroup.com\/en-in\/wp-json\/wp\/v2\/whitepapers?post=24760"},{"taxonomy":"case_studies","embeddable":true,"href":"https:\/\/ivaluegroup.com\/en-in\/wp-json\/wp\/v2\/case_studies?post=24760"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}