The Legal Aspect And Evolution Of AI In Global And Indian Banking

Shivam Swaroop Mathur, BBA LLB, Symbiosis Law School, Nagpur

ABSTRACT

This paper examines the transformative influence of artificial intelligence (AI) in the banking sector globally and in India, focusing on the legal, ethical, and practical dimensions of AI integration. As banks harness AI for enhancing efficiency, personalising customer service, managing risk, detecting fraud, and offering financial advice, deploying AI technologies raises significant questions regarding privacy, accountability, regulatory compliance, and the potential displacement of human labour. This study delves into the benefits and challenges of AI in banking, scrutinises the legal frameworks regulating AI use in various jurisdictions, with a particular focus on India, and contrasts these with international standards. Through this comparative analysis, the paper aims to illuminate the evolving landscape of AI in banking, emphasising the need for robust legal strategies to harness AI's potential while safeguarding against its risks.