Has AI Shifted from Margins to Mainstream? NPCI's Ajay Kumar Choudhary Explores
Click to start listening
Synopsis
Discover how AI is redefining financial services as NPCI's Ajay Kumar Choudhary unveils its transformative potential. With a projected investment nearing $100 billion and widespread adoption, the future of finance is now. Join us to explore the promise and challenges of AI in creating inclusive financial landscapes.
Key Takeaways
- AI is a transformative force in financial services.
- Investment in AI is expected to reach nearly $100 billion by 2027.
- 78% of organizations are employing AI technologies.
- Generative and Agentic AI are leading the change in the financial sector.
- Responsible AI adoption is critical for sustainable growth.
Mumbai, Oct 7 (NationPress) Artificial Intelligence (AI) has transitioned from a concept of the future to a pivotal element in transforming financial services, stated Ajay Kumar Choudhary, Non-Executive Chairman and Independent Director of the National Payments Corporation of India (NPCI), on Tuesday.
During his keynote speech at the 6th Global FinTech Fest (GFF) 2025, Choudhary emphasized that AI is revolutionizing the design, delivery, and experience of financial services, paving the way for enhanced efficiency and inclusion.
“Artificial intelligence has shifted from the periphery to the core of our industry. It is transforming how we create, deliver, and experience financial services, unlocking opportunities for efficiency, inclusion, and resilience,” he remarked.
Addressing the topic “AI’s Promise and Peril: Building Responsible Intelligence for Inclusive Finance,” he cautioned that it also introduces intricate challenges that necessitate responsible governance and global collaboration.
Choudhary pointed out that the investment in AI across sectors such as banking, insurance, capital markets, and payments is expected to approach $100 billion by 2027.
He mentioned that 78 percent of financial institutions are now utilizing AI in at least one capacity, a significant increase from 55 percent in 2023.
“The industry is no longer questioning the relevance of AI; it is strategizing on how quickly and far it will propel us,” he noted.
He elaborated on two types of AI—Generative AI, which generates and analyzes data on a large scale, and Agentic AI, capable of executing complex tasks independently—driving significant transformations in the financial domain.
These innovations can bolster fraud detection, automate compliance, enhance trading precision, and improve customer experiences, potentially boosting global banking productivity by $200–340 billion annually.
“Responsible AI is not just a catchphrase; it is the only viable path forward,” he asserted, advocating for increased international cooperation to ensure data security and sustainable AI integration.
Choudhary also lauded India’s progress in fostering inclusive digital innovation, particularly through the Unified Payments Interface (UPI), which now handles over 20 billion transactions per month.
He mentioned NPCI’s initiatives aimed at broadening financial access, including ‘UPI Lite’ for low-bandwidth areas, ‘UPI 123Pay’ for users with feature phones, and ‘UPI for Her’ to empower women entrepreneurs.
Point of View
I recognize that the advent of AI in finance is not just a trend but a necessary evolution. The insights shared by NPCI's Ajay Kumar Choudhary underscore the urgency for institutions to adapt, ensuring responsible and inclusive practices that benefit all stakeholders. As we advance, our commitment to fostering innovation while upholding ethical standards remains paramount.
NationPress
07/10/2025
Frequently Asked Questions
What is the projected investment in AI by 2027?
The investment in AI across various sectors is projected to reach nearly $100 billion by 2027.
How many financial organizations are using AI?
78 percent of financial organizations are utilizing AI in at least one area, compared to 55 percent in 2023.
What are the two primary forms of AI discussed?
The two forms of AI mentioned are Generative AI and Agentic AI.
How can AI impact global banking productivity?
AI technologies could potentially enhance global banking productivity by $200–340 billion annually.
What initiatives does NPCI have for financial inclusion?
NPCI has launched initiatives such as ‘UPI Lite’ for low-bandwidth regions, ‘UPI 123Pay’ for feature phone users, and ‘UPI for Her’ to support women entrepreneurs.
