AI Poses Risks, Demands Evolving Regulation: Sebi Chief Tuhin Kanta Pandey

• Sebi Chairman Tuhin Kanta Pandey highlighted AI risks in finance, urging regulatory evolution to supervise technology and manage regulated vs. unregulated digital spaces.
• Pandey quoted Microsoft AI CEO Mustafa Suleyman, calling AI a 'compelling challenge' for humanity.
• While AI offers powerful tools for surveillance and fraud detection, it also brings risks like opacity, bias, and concentration of technological power.
• Regulation must shift from supervising institutions to overseeing systems and technology, addressing interconnectedness risks and strengthening data governance.
• Sebi is responding with SupTech, RegTech, stronger cybersecurity, and improved data governance, also forming an expert group for a strategic technology roadmap.