AI adoption is already high in India. More than 65 per cent of Indians have adopted AI compared to the global average of 31 per cent, according to a survey by Microsoft released on August 9, 2024.
The government also sees potential. In a written reply to Parliament on July 23, 2025, Ashwini Vaishnav, Minister of Electronics and Information Technology, said, “India’s AI strategy aims to position India as a global leader in artificial intelligence. Government launched IndiaAI mission in March 2024. It is a strategic initiative to establish a robust and inclusive AI ecosystem aligned with India’s development goals.”
Amid the mass uptake of AI in every other sphere of life, the nascent technology is also being used widely in the realm of personal finance. A survey released by the CFA Institute, a not-for-profit, finance education website, on July 8, 2025, found that 83 per cent of Indian graduates trust AI assistants as much as they trust their social circle when it comes to seeking financial guidance.
1 September 2025
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In that context, the key questions that arise are: What does the new tech mean for aspects like data analysis, financial processes and customer services? How far can individuals trust AI and AI-led financial advice? In our 27th anniversary issue, we dissect these questions and more.
We believe it’s better to enter an unknown territory armed with information, good and bad. So, we looked at the myriad ways in which AI is helping the financial industry quicken processes and optimise services. At the same time, we focused on the gaps that need to be filled and the risks to be navigated.
Some of the biggest concerns regarding AI right now are to do with the behavioural biases that AI could give into, lack of transparency, advent of high-level AI-led frauds, concerns regarding data privacy, and glitches, mistakes or hallucinations that can mislead users. The solutions include maintaining a balance instead of over-relying on AI, cross-checking and challenging chatbots on their own results, and a strong regulatory and industry oversight, among others.
Interestingly, in some areas like cyber frauds, AI capabilities themselves are being harnessed to fight the menace. According to an EY study, How Artificial Intelligence Is Reshaping The Financial Services Industry, released in April 2024, “AI’s advanced capabilities position it as a crucial ally in the fight against cyber threats. Its capacity to enhance threat detection, automate incident responses and adapt to evolving risks presents a compelling case for its strategic deployment in cybersecurity efforts.”
Not embracing AI or at least not getting a hang of it can hold you back as the world moves ahead and explores new technological territories, so try you must, but with a little or perhaps a lot of caution.
Story and data analysis: Outlook Money Team
