RBI Governor Stresses on Removal of Biases in AI and Machine Learning
The Reserve Bank of India (RBI) Governor Shaktikanta Das emphasized the importance of addressing ethical considerations and eliminating biases in algorithms while enhancing capacity in artificial intelligence (AI) and machine learning (ML). Speaking at the 18th Statistics Day Conference organized by the RBI, Das highlighted the central bank’s aspirational goals for developing cutting-edge systems for high frequency and real-time data monitoring and analysis.
He pointed out the need to focus on enhancing capacity in AI and ML techniques, along with analyzing unstructured textual data. Das underscored the significance of considering ethical implications and removing biases in algorithms to ensure fair and accurate outcomes.
Statistics have become a crucial tool for making inferences across various domains, evolving from mere data collection to interpreting information and drawing conclusions despite uncertainties. The RBI is leveraging vast computing power and digital footprints to analyze expectations, sentiment indicators, and policy credibility measures from alternative data sources. These unconventional data sources proved invaluable during the challenging periods of COVID-19 lockdowns and restrictions.
The utilization of alternative data sources extends beyond crisis situations, requiring data management systems to adapt to the use of such inputs for policymaking. It is essential to eliminate irrelevant noise and capture meaningful signals from high frequency indicators to make informed decisions. Das emphasized the importance of keeping pace with advancements in data analysis techniques and ensuring the quality and relevance of information used for policy formulation.
As the RBI continues to enhance its capabilities in AI and ML, the focus remains on promoting ethical practices, eliminating biases, and harnessing the power of data for informed decision-making. By embracing technological advancements and refining data analysis processes, the central bank aims to strengthen its ability to navigate complex economic landscapes and drive sustainable growth.
