'AI's RoI may be slow, but governance can't wait'

The return on investment (RoI) from technologies such as artificial intelligence (AI) will take time to materialise, and the immediate priority should be to increase spending on building governance frameworks around AI, top bank executives said at the Business Standard BFSI Insight Summit 2025.

- BS REPORTER

(From left) Ambuj Chandna, MD & head -- consumer banking group, DBS Bank India; Virat Diwanji, national head -- consumer banking, Federal Bank; Sanjay Mudaliar, executive director, Bank of Baroda; Sachin Seth, regional MD, India and South Asia, CRIF; and Arvind Vohra, group head -- retail assets, rural banking business and microfinance, HDFC Bank

At present, there is scope to use AI and automation across areas such as customer service, underwriting, and debt recovery to improve the efficiency of banking operations. At the same time, executives emphasised that data and AI usage must have valid grounds, with explainability at the core of every application.

The remarks came during a panel discussion titled 'Impact of Tech & AI on Retail Banking— Pros & Cons' in Mumbai, moderated by Nivedita Mookerji of Business Standard.

"RoI is case by case. It's about the overall philosophy of transformative power — whether it’s AI, generative AI, or any tech initiative we bring in," said Arvind Vohra, group head, retail assets, rural banking business and microfinance, HDFC Bank.