Even as the use of artificial intelligence (AI) and machine learning (ML) is on the rise, there is a need to eliminate biases in algorithms, Shaktikanta Das, Governor of RBI, said on Friday.

“The focus now is naturally on enhancing capacity in artificial intelligence (AI) and machine learning (ML) techniques and analysing unstructured textual data. While doing so, ethical considerations need to be addressed and biases in algorithms need to be eliminated. In the Reserve Bank, we have ventured into AI/ML analytics in multiple areas. Under the Reserve Bank’s aspirational goals for RBI@100, we aim to develop cutting edge systems for high frequency and real-time data monitoring and analysis,” Das said while speaking at the 18th Statistics Day Conference .

Computing power

Das said the RBI is also making efforts to harness the availability of huge computing power and growing digital footprints to analyse measures of expectations, sentiment indicators and policy credibility measures from alternative data sources.

“Let me add that the use of alternative and unconventional data sources proved to be invaluable during the most severe phases of the Covid-19 related lockdowns and restrictions. In fact, their utility extends beyond periods of crisis. Data management systems need to keep pace with the use of unconventional data sources as policy inputs,” Das said.

“While doing so, we have to be mindful of the importance of eliminating noise and capturing the signals from high frequency indicators. We are conscious that we are moving from an era of data scarcity to data abundance. The volume of digital data stored as well as the storage capacity are growing at an exponential pace, bringing forth new challenges along with new opportunities,” he added

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