Has AI Transitioned from Margins to Mainstream? NPCI Chairman Explains
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Synopsis
Discover how AI is reshaping financial services as NPCI Chairman Ajay Kumar Choudhary highlights its transition from a futuristic idea to a fundamental element in today's financial landscape. Learn about the opportunities and challenges that come with this technological evolution.
Key Takeaways
- AI is reshaping financial services across various sectors.
- Investment in AI is projected to reach $100 billion by 2027.
- 78% of financial institutions are leveraging AI in their operations.
- Generative and Agentic AI are key drivers of change.
- International collaboration is essential for responsible AI governance.
Mumbai, Oct 7 (NationPress) Artificial Intelligence (AI) is no longer just a vision for the future; it has emerged as a pivotal force in transforming financial services, stated Ajay Kumar Choudhary, Non-Executive Chairman and Independent Director of the National Payments Corporation of India (NPCI), during his keynote speech at the 6th Global FinTech Fest (GFF) 2025 today.
Choudhary articulated that AI is revolutionizing the design, delivery, and user experience of financial services, unlocking new avenues for efficiency and inclusivity.
“Artificial intelligence has transitioned from the margins to the mainstream. It is redefining how we create, deliver, and engage with financial services, paving the way for enhanced efficiency, inclusion, and resilience,” he emphasized.
In his address on the theme “AI’s Promise and Peril: Building Responsible Intelligence for Inclusive Finance,” he cautioned that this advancement brings intricate challenges that necessitate responsible governance and global collaboration.
Choudhary noted that investments in AI across sectors such as banking, insurance, capital markets, and payments are anticipated to approach $100 billion by 2027.
He pointed out that 78 percent of financial institutions are currently leveraging AI in at least one capacity, a significant rise from 55 percent in 2023.
“The conversation in the industry has shifted from whether AI is important to how far and how quickly it can propel us forward,” he stated.
He described two categories of AI—Generative AI, which generates and analyzes data on a large scale, and Agentic AI, which can autonomously execute complex tasks—as the driving forces behind significant transformations in the financial sector.
These innovations can bolster fraud detection, automate compliance, enhance trading precision, and improve customer experiences, potentially amplifying global banking productivity by $200–340 billion annually.
“Responsible AI is more than a catchphrase; it is our only viable path forward,” he asserted, urging for increased international cooperation to safeguard data security and foster sustainable AI integration.
Choudhary also commended India’s strides in inclusive digital innovation, notably through the Unified Payments Interface (UPI), which now facilitates over 20 billion transactions monthly.
He discussed NPCI’s initiatives to broaden financial access, including ‘UPI Lite’ for low-bandwidth regions, ‘UPI 123Pay’ for users of feature phones, and ‘UPI for Her’ designed to support women entrepreneurs.
Point of View
It is crucial to emphasize that the ongoing evolution of AI in financial services is not merely a trend but a significant transformation that necessitates cautious and responsible integration. NPCI's emphasis on inclusivity and security underlines the importance of collaboration and governance in navigating this complex landscape.
NationPress
07/10/2025
Frequently Asked Questions
What is NPCI?
The National Payments Corporation of India (NPCI) is an umbrella organization for operating retail payments and settlement systems in India, facilitating various payment services.
How is AI impacting financial services?
AI is transforming financial services by enhancing fraud detection, automating compliance, improving trading accuracy, and enriching customer experiences.
What is the projected investment in AI by 2027?
Investment in AI across banking, insurance, capital markets, and payments is estimated to reach nearly $100 billion by 2027.
What are 'Generative AI' and 'Agentic AI'?
Generative AI creates and analyzes data at scale, while Agentic AI performs complex tasks autonomously, both driving significant changes in the financial sector.
How many financial organizations are using AI?
Currently, 78 percent of financial organizations are employing AI in at least one area, a notable increase from 55 percent in 2023.
