Nirmala Sitharaman Flags Risks of Rapidly Growing AI At Fintech Fest 2026

Union Minister of Finance Nirmala Sitharaman cautioned about the downsides of artificial intelligence (AIs) in the face of the rapid growth in the technology, at the Global Fintech Fest 2026. She focussed specifically on agentic AI and large language models (LLMs). These risks can range from cyberattacks to interference in elections.

Sitharaman described AI as a powerful tool that can be potentially dangerous, too. She said its growing autonomy could make the existing safety framework inadequate. She called for global cooperation and updated safety standards to address threats that can emerge from increasingly capable AI systems.

Her concerns come as AI is being used all across financial services, cybersecurity systems and even within the payment ecosystems. Malicious actors are also experimenting with AI-driven attacks.

She said AI adoption is no longer optional, adding that adopting AI in varied institutions, however, should not come at the cost of security, resilience, and public trust.