THE MACHINE THAT NOW RUNS MONEY

FROM CREDIT SCORES TO TRADING FLOORS, AI IS BECOMING THE CENTRAL ACTOR IN AN AUTOMATED ECONOMY. THIS IS ALSO ALTERING THE FOUNDATIONS OF TRUST, RISK AND BEHAVIOUR

- By Utpal Chakraborty

The financial world has always adapted to new tools, but what is taking shape today is not a routine technological shift. It is a deep restructuring of how decisions are made inside banks, markets and digital payment ecosystems. Artificial Intelligence has entered finance in many forms, yet its real influence comes from something more subtle. It is slowly changing the foundations of trust, risk, behaviour and value creation. As we move into a new year, it is clear that AI will not remain an auxiliary aid. It will become a central actor in how the automated economy operates.

For decades, the industry relied on historical data, fixed rules and human-driven judgement for every critical function. Lending, trading and fraud management were all shaped by a predictable rhythm. AI alters this rhythm because it works with probabilities rather than fixed rules. Models sift through an enormous flow of signals, identify shifting patterns and adjust their own understanding of risk. This shift from static rules to dynamic intelligence is what will separate the winners from the laggards in the coming years.

In India, the banking sector offers a uniquely rich testbed for AI at scale, given its vast population diversity, digital public infrastructure and rapid adoption of real-time payments. From AI-driven credit assessment for MSMEs to fraud detection across UPI and mobile banking, algorithms are increasingly shaping how trust and access are delivered in one of the world's fastest-growing financial ecosystems.

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