AI has moved from margins to mainstream: NPCI Chairman

Mumbai, Oct 7 Artificial Intelligence (AI) is no longer a futuristic concept but has become a central force in reshaping financial services, Ajay Kumar Choudhary, Non-Executive Chairman and Independent Director of the National Payments Corporation of India (NPCI) said on Tuesday.

Delivering the keynote address at the 6th Global FinTech Fest (GFF) 2025 here, Choudhary said that AI is transforming the way financial services are designed, delivered, and experienced, creating new opportunities for efficiency and inclusion.

“Artificial intelligence has moved from the margins to the mainstream. It is reshaping how we design, deliver, and experience financial services, opening doors for efficiency, inclusion, and resilience,” he said.

Speaking on the theme “AI’s Promise and Peril: Building Responsible Intelligence for Inclusive Finance,” however, he warned that it also brings complex challenges that must be managed through responsible governance and global cooperation.

Choudhary highlighted that investment in AI across banking, insurance, capital markets, and payments is projected to reach nearly $100 billion by 2027.

He noted that 78 per cent of financial organisations are already using AI in at least one area, compared to 55 per cent in 2023.

“The industry is no longer debating if AI will matter -- it is now preparing for how far and how fast it will take us,” he said.

He explained that two forms of AI -- Generative AI, which creates and analyses data at scale, and Agentic AI, which can perform complex tasks autonomously -- are driving major changes in the financial sector.

These technologies, he said, can enhance fraud detection, compliance automation, trading accuracy, and customer experience, potentially increasing global banking productivity by $200–340 billion annually.

“Responsible AI is not a slogan, it is the only way forward,” he said, calling for greater international collaboration to ensure data security and sustainable AI adoption.

Choudhary also praised India’s achievements in inclusive digital innovation, particularly through the Unified Payments Interface (UPI), which now processes over 20 billion transactions a month.

He spoke about NPCI’s efforts to expand financial access through initiatives like ‘UPI Lite’ for low-bandwidth regions, ‘UPI 123Pay’ for feature phone users, and ‘UPI for Her’ to support women entrepreneurs.

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