Setty said the next phase of AI-led banking should move beyond retail banking and customers with established financial historiesMUMBAI: Artificial intelligence could help banks expand credit to rural India, small businesses and farmers while improving risk assessment and productivity, SBI chairman CS Setty said at FIBAC 2026, but banks will have to strengthen cyber defences, governance and human oversight as they expand the use of the technology.Setty said the next phase of AI-led banking should move beyond retail banking and customers with established financial histories. “The next wave of AI-led banking must take us deeper into the economy—to rural India, small businesses, and customers whose financial histories may not fit conventional models,” he said.According to Setty, “AI can support better farm-level decisions, while data-driven risk assessment, digital records, and satellite imagery can help banks improve credit access and portfolio management.” He said adoption of such technology was already taking place in farm lending. The larger challenge is to move AI applications from pilots to wider use.