Sitharaman flags agentic AI risks to public opinion and elections

The Finance Minister says increasingly autonomous AI systems require stronger accountability and safeguards, as India’s fintech sector rapidly expands its use of AI across payments, fraud detection, customer services, financial operations and emerging agentic applications.

Finance Minister Nirmala Sitharaman has cautioned that rapid advances in artificial intelligence, particularly agentic AI and large language models (LLMs), could create risks beyond cybersecurity threats.

Speaking at the Global Fintech Fest 2026, Sitharaman said AI systems could be used for cyberattacks, manipulation of public opinion and election interference. She called for greater institutional accountability, stronger safety measures and attention to AI alignment, while stressing that regulation should not restrict innovation.

Sitharaman highlighted the ability of AI systems to operate with limited human intervention. She warned that such autonomy could make applications difficult to detect when deployed at scale.

"The model that I'm referring to is fully capable of influencing opinion on the ground without people even sensing that they are being influenced. Being a minister and being in politics, I'm clearly seeing it capable of influencing elections," she said.

The Finance Minister said India must prepare for emerging risks while continuing to support technological development. Her remarks come as fintech companies explore AI for payments, fraud detection and customer services.

Fintech sector faces new AI challenges

Sitharaman also welcomed the Reserve Bank of India’s recognition of the Unified Fintech Forum (UFF) as a self-regulatory organisation for the fintech sector on September 10. UFF is the second organisation recognised under the central bank’s SRO-FT framework.

She said, "I'm glad, understanding the rapidity with which this sector is moving. This sector, when I say it's a spectrum, it's not one. The model that I'm referring to is fully capable of influencing opinion on the ground without people even sensing that they are being influenced. Being a minister and being in politics, I'm clearly seeing it as capable of influencing elections. I'm therefore glad that just yesterday, September 10, the Reserve Bank of India recognised the Unified Fintech Forum as another self-regulatory organisation for the fintech sector under the SRO-FT framework."

The recognition is intended to strengthen industry standards, accountability and responsible growth as fintech companies introduce technologies. It reflects the need for industry-led governance alongside regulation.

The rise of agentic AI is prompting financial institutions and regulators to examine how autonomous systems should be authenticated, monitored and held accountable. The National Payments Corporation of India is developing a registry for AI agents that could conduct UPI transactions on behalf of users.

Balancing innovation with safeguards

Sitharaman’s comments highlight the dual nature of advanced AI. The technology can improve productivity, strengthen fraud detection and expand access to financial services, but it can also provide new tools for malicious actors.

Other financial-sector leaders have also stressed safeguards. RBI Governor Sanjay Malhotra has emphasised fintech companies’ responsibility to protect customer data, while SBI Chairman CS Setty has advocated a “know your agent” approach as AI becomes more involved in financial services.