The biggest risk of deploying Artificial Intelligence (AI) in banks is the erosion of human judgment and accountability, Reserve Bank of India (RBI) Governor Sanjay Malhotra said on Tuesday. “No matter how sophisticated the [AI] model, the responsibility for a bank’s decisions rests with the bank, not with its algorithm. “The model decided” can never be an acceptable answer to a customer, an auditor, or the Reserve Bank,” he cautioned. “Red-team and stress-test AI systems before deployment and periodically thereafter, just as you would stress-test any other material risk,” he suggested. The Governor said AI would define this decade of Indian banking as decisively as liberalisation defined the 1990s and digitalisation defined the 2010s.