FM Sitharaman Warns of AI Risks in Cyberattacks, Elections at Fintech Fest

Finance Minister Nirmala Sitharaman has raised concerns about the rapid progress of artificial intelligence, warning that increasingly advanced AI systems could create new risks if their development is not accompanied by adequate safeguards and accountability.

Speaking at the Global Fintech Fest 2026, Sitharaman referred to recent warnings from an AI researcher about frontier laboratories competing to develop highly advanced systems capable of self-improvement. She said such concerns deserve closer examination and called for stronger institutional accountability on AI safety and alignment.

The Finance Minister particularly highlighted the potential risks associated with agentic AI systems and large language models. According to Sitharaman, these technologies could potentially be misused for cyberattacks and attempts to manipulate public opinion, including during elections.

She said, "The model that I'm referring to is fully capable of influencing opinion on the ground without people even sensing that they are being influenced. Being a minister and being in politics, I'm clearly seeing it capable of influencing elections."

Sitharaman also discussed the challenge of regulating emerging technologies without slowing innovation, particularly in India’s rapidly expanding fintech sector. She said she had raised the issue with the Reserve Bank of India (RBI), asking whether a lighter regulatory approach could help address potential risks while allowing fintech companies to continue innovating.

She welcomed the RBI’s recognition of the United FinTech Forum as a self-regulatory organisation under the SRO-FT framework.

"I'm therefore glad that just yesterday, September 10, the Reserve Bank of India recognised the Unified Fintech Forum as another self-regulatory organisation for the fintech sector under the SRO-FT framework," she added.

Her comments came amid growing debate within the global technology industry over the safety of increasingly capable AI systems. Reports said a researcher who had previously worked at Anthropic and OpenAI resigned from Anthropic, citing concerns that competition among leading AI companies could be taking priority over responsible AI development.

The Finance Minister also spoke positively about India’s young workforce and its contribution to the economy. She said the country’s demographic dividend was already becoming a reality, rather than being a distant prospect.

"This generation is not waiting for legacy yardsticks to validate their productivity, they're already writing tomorrow's code, building enterprises and proving that India's demographic dividend is an active, unstoppable reality," she said.

ABOUT THE AUTHOR

Kahekashan

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Kahekashan is a passionate technophile with a keen eye for cutting-edge gadgets, emerging technologies, and everything in the digital realm. Raised in a Defence family with strong values and a background in literature, she has consistently pursued excellence in every endeavour. Her last full-time assignment involved content writing with the Indian School of Business.

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