New Delhi, Oct 15 (NationPress) The initiatives led by the Central Government to establish a national AI ecosystem are set to enhance accessibility to AI resources for smaller entities within the financial services sector, moving beyond just the large players, as highlighted in a report released on Wednesday.

The analysis provided by the business consultancy Grant Thornton Bharat emphasizes that this transition necessitates that companies actively adapt their frameworks to integrate with these platforms and share both datasets and models.

Key initiatives like the IndiaAI Mission, AI Kosh, the DPDP Act, and the cybersecurity mandates from CERT-In are laying down the essential infrastructure for computing resources, datasets, data protection, and digital frameworks that financial institutions can leverage, according to the report.

Financial organizations are currently grappling with four main structural challenges: data quality, infrastructure deficiencies, shortage of skilled talent, and regulatory uncertainties.

For banks and non-banking financial companies (NBFCs), AI has escalated to a governance-level priority, necessitating robust model risk management and fairness initiatives. The report indicates that the sector needs to formalize model risk management by creating thorough inventories of AI applications, developing programs focused on fairness and transparency, and incorporating incident reporting into existing supervisory frameworks.

Moreover, national projects like AI Kosh and the IndiaAI Compute Platform are expected to mitigate capacity challenges faced by smaller institutions. The capital markets are encouraged to prioritize transparency and auditability to foster trust in AI-driven decision-making. The consultancy firm has urged insurers and fintech companies to push for innovation while ensuring fairness, explainability, and consumer protection remain central.

According to a recent report from the RBI, merely 20 percent of regulated entities have implemented any form of AI technology so far, predominantly relying on basic rule-based non-learning AI models and moderately complex machine learning models, with a limited embrace of advanced AI technologies.

The report concludes that AI has evolved from being an experimental tool into a regulated framework that mandates principles of fairness, transparency, and governance.