- Finance Minister Nirmala Sitharaman warned AI could influence elections and manipulate public opinion.
- She urged greater accountability and regulatory measures for AI safety and alignment.
- AI poses risks like cyberattacks and fraud but can also enhance efficiency and innovation.
Finance Minister Nirmala Sitharaman has sounded the alarm over the risks posed by rapidly advancing artificial intelligence, warning that frontier AI systems could potentially influence elections and manipulate public opinion without people realising they are being influenced.
Speaking at the Global Fintech Fest 2026 on Friday, Sitharaman said warnings from AI researchers about the race among leading laboratories to develop highly advanced and potentially self-improving systems warranted closer scrutiny. She called for greater institutional accountability around AI safety and alignment.
Sitharaman highlighted the risks associated with agentic AI systems and large language models, including their potential use in cyberattacks and attempts to influence electoral outcomes.
ALSO READ: 'Sharpen Capability': FM Sitharaman Pushes RBI To Advance Digital Rupee Platform
"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 said.
The finance minister said AI was a double-edged sword, noting that while the technology could be deployed to detect fraud, it could also be used to perpetrate it. She stressed the need to improve efficiency through innovation without creating new forms of systemic fragility.
Sitharaman said she had discussed with the Reserve Bank of India the need for a regulatory approach that addresses emerging risks without choking innovation in the fintech sector.
She welcomed the RBI's recognition on September 10 of the Unified FinTech Forum as a self-regulatory organisation under the SRO-FT framework.
The minister said such an approach could help the sector respond to evolving technological risks while allowing fintech companies to continue innovating. She also called for further progress on the RBI's wholesale and retail Central Bank Digital Currency pilot.
Her comments come amid growing concerns within the AI industry over the pace of development of increasingly capable systems. A researcher who had worked at Anthropic and OpenAI recently announced his resignation from Anthropic, citing concerns that competition among leading AI firms was taking precedence over responsible development.
Sitharaman also used her address to highlight India's demographic advantage, arguing that the country's young workforce was already contributing to economic growth rather than representing a future opportunity.
ALSO READ: Fertiliser Shortage Not Felt In India, Managed To Keep Markets Informed: Nirmala Sitharaman
She pointed to India's digital public infrastructure, including UPI, its economic growth and advances in space exploration as evidence of the contribution being made by the country's young population.
"We are seeing it translate into monumental strides from building the world's most powerful digital public infrastructure with UPI processing billions of transactions, to standing tall as the fastest-growing major economy and breaking frontiers in space exploration," Sitharaman said.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
