AI offers powerful tools for fraud detection, but has risks too: Sebi Chief
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Mumbai: Tuhin Kanta Pandey, chairperson of the Securities and Exchange Board of India (Sebi), Friday flagged risks posed by artificial intelligence (AI) in regulating the securities market. "AI offers powerful tools for surveillance and fraud detection... But it also brings risks - opacity, bias, and concentration of technological power," Pandey said. "Regulation must therefore evolve from supervising institutions to supervising systems and technology." The top boss at the regulatory body added that technology is reshaping markets faster than any rulebook. Algorithmic trading, digital platforms, and AI-driven decision-making are now part of everyday market functioning. "We must address concentration and interconnectedness risks. Strengthen data governance and consent architectures. And manage the boundary between regulated finance and unregulated digital spaces," he said, speaking at the summit. Sebi is, t...