Union Finance Minister Nirmala Sitharaman said she has asked the Reserve Bank of India (RBI) about the possibility of regulating artificial intelligence (AI) with a light touch. Speaking at the Global Fintech Fest 2026, she highlighted that a leading AI model is capable of influencing elections without voters realizing they are being influenced, raising concerns about the technology's impact on democratic processes, according to medianama.com.
During her valedictory address, Sitharaman described a large language model, which she did not name, as "fully capable of influencing the opinion in the ground without the ground even sensing that they are being influenced." She clarified that she was discussing the capability rather than alleging any specific incident of election interference. Sitharaman also mentioned a scenario where a country was attacked by multiple agentic groups and rogue operators that compromised an entire national system, without providing further details or naming the country, as reported by medianama.com.
The remarks underscore growing concerns about AI's role in shaping public opinion and the challenges regulators face in balancing innovation with security. The Reserve Bank of India’s potential soft-touch regulation approach reflects an attempt to address risks without stifling technological advancement. These comments come amid global debates on AI governance and the risks posed by sophisticated AI models in political and national security contexts.
Sitharaman’s inquiry to the RBI about AI regulation signals the Indian government’s active engagement with emerging AI risks. The Global Fintech Fest 2026, where she spoke, serves as a platform for policymakers and industry leaders to discuss fintech and AI developments, highlighting the urgency of regulatory frameworks for AI technologies.