India, July 4 -- The emergence of novel AI regulations remodels commercial relationships, particularly in the financial sector. Recent SEBI regulations require AI deployers to build privacy and security safeguards around the AI they use. These rules were followed last week by a consultation paper, portending guidelines for using AI in the securities market. Relatedly, the Reserve Bank of India, is mulling over a framework for responsible AI in the financial sector. Such responsibility, it notes, shall draw not only from conventional financial regulation, but also from the nascent domain of AI ethics.

Theoretically, the interplay of ethics, privacy and security inspires trust. Privacy-preserving systems encourage greater data sharing; eth...