Mumbai: How banks use artificial intelligence (AI) beneficially, the framework around data and privacy and inserting AI into existing banking systems remain a challenge even though AI engineering and data skills are undergoing a transformative change which will help banks in the long run, top bank CEOs said in a panel discussion at the FIBAC conference.Banks are increasingly looking beyond traditional uses of AI such as fraud detection and risk management and moving towards more mature generative AI and agentic AI, which executives said could change customer service and internal operations.“The highest use of AI will be through agentic AI, where we create AI agents for customer service,” said Ashok Chandra MD and CEO of Punjab National Bank, adding that convenience and security would remain key as banks deal with both employees and customers.Banks, however, will also need to invest in reskilling and upskilling employees to ensure they can use new technology effectively, Chandra said.“The challenge that banks currently have is the slow ability to implement technology. That implementation can be speeded up with the use of AI,” said PD Singh, CEO, India and South Asia, Standard Chartered Bank. “We have already seen 30% improvement in the speed of implementation of tech projects by using the help of AI to get there,” Singh Said.Data quality and governance are emerging as another critical challenge for banks as they deploy AI across functions, with executives saying access to reliable data and the ability to use it across different banking operations will determine how effectively the technology can be deployed.Banks will also need stronger governance frameworks as AI becomes more autonomous, executives said, particularly as lenders experiment with AI agents.“There has to be a very clear board level AI governance framework in the bank, that is very important,” Debadatta Chand, CEO, Bank of Baroda said, adding that monitoring committees should oversee implementation at different levels.“Whatever model we are developing, at the end of the day, it has to be under human control,” he said. “There shouldn’t be a situation where the AI has started behaving differently.”Executives said AI could eventually improve customer experience, accelerate technology implementation and make banking more accessible, but banks would need to balance these gains with employee readiness, data governance and human oversight.
AI can transform banking, but data, privacy, governance remain key challenges: CEOs
Top bank CEOs discussed AI's beneficial use in banking operations. They highlighted generative and agentic AI for customer service and internal improvements. Data quality and governance frameworks are critical challenges for effective AI deployment. Banks must invest in employee reskilling and maintain human oversight of AI systems. AI promises improved customer experience and faster technology implementation.
TL;DRAI
CEOs identify agentic AI as banking's next frontier for customer operations; Standard Chartered reports 30% faster tech implementation via AI. Data governance and human oversight emerge as critical guardrails—ROI depends on governance frameworks and data quality, not technology.
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