RBI chief says the next financial crisis may start with a cyberattack
The next financial crisis may not start in a bank at all, India’s central bank governor has warned. Sanjay Malhotra said it could come from a war, a cyberattack or a tech failure, as Bloomberg reported.
He spoke at the Kautilya Economic Conclave in New Delhi on Saturday.
“It may begin with a geopolitical event, or cyber attack or a technological failure,” he said.
AI in the mix
The Reserve Bank of India governor singled out AI, Business Today reported. He said it has made cyber risks worse.
It also brings new risks from faulty models, reliance on outside suppliers and weaker human oversight, he said.
He also flagged high prices for AI stocks. A slowdown in AI spending or earnings could set off a sharp fall in asset prices, he warned.
Last month, Finance Minister Nirmala Sitharaman made a similar point. AI can help catch fraud faster, she said,...
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