Indias public sector banks accelerate AI adoption: RBI [Video]

The Reserve Bank of India (RBI) has acknowledged an increased mention of artificial intelligence (AI)-related technologies in the annual reports of public sector banks. Earlier, private sector banks were more proactive towards AI.

In its October bulletin, the central bank’s report pointed out that “enthusiasm” towards AI-based technologies at many public-sector banks in India is broadly at par with their private-sector peers, especially in recent years. 

RBI’s research employed text-mining techniques to analyze the annual reports of 32 Indian commercial banks over an eight-year period, from FY 2015-16 to FY 2022-23. The study aimed to identify the adoption and usage of AI and related technologies, as well as track their growth in recent years. Additionally, it examined how the banks’ financial health influenced their adoption of AI, using a fixed effects panel data model.

“In case of public sector banks (PSBs), the emphasis on new age technologies like AI in their annual reports has increased more than 3 times between 2015-16 and …