Tech Desk: Finance Minister Nirmala Sitharaman has issued a powerful call for stronger AI safeguards, emphasizing that the rapid rise of agentic AI presents risks too significant for society to address after the fact. Speaking at the Global Fintech Fest 2026, Sitharaman underscored the urgent need for institutional accountability from the AI industry, questioning the current pace of safety measures against evolving technologies.

The Minister highlighted a critical imbalance, asking who from the global AI industry would reassure the public about system safety and demonstrate that safeguards are truly keeping pace. She warned that without swift and continuous updates to these protections, the question of AI “going rogue” leaves an unsustainable distribution of risk on society.

Sitharaman revealed discussions with the Reserve Bank of India on a regulatory approach that could address emerging AI risks without stifling innovation. She acknowledged AI as a double-edged sword in finance, capable of detecting fraud faster but also enabling more sophisticated cyber-attacks.

Her address called for a regulatory framework that distinguishes between unnecessary friction and essential AI safeguards, such as built-in checks and human oversight. She stressed that responsibility for AI cannot be delegated solely to technology teams; instead, it must remain human and institutional, with higher-risk applications facing greater scrutiny. The ultimate goal is to build systems that are fast yet accountable, autonomous yet reversible, ensuring efficiency and safety are mutually reinforcing objectives.