NSE chief Ashish Chauhan flags AI risks; cautions investors on fake videos, websites

National Stock Exchange of India Ltd (NSE) MD and CEO Ashish Chauhan on Thursday warned investors against fake videos, websites and other forms of information that can be created or altered using artificial intelligence (AI).

In an exclusive interaction with Business Today Television (BTTV), Chauhan recalled an incident from around three years ago when a fake video of him was circulated on Facebook, asking people to join a WhatsApp group for stock tips.

"Three years back, when AI was just coming in, people faked my own video and put it on Facebook, which even now they keep putting up. We keep removing [those videos]. They say, 'Join my WhatsApp group, I will give you tips.' And I am not even allowed to trade, nor am I allowed to say anything about stocks at all," Chauhan underscored.

"Why I'm telling you this is the difference between what is truth and untruth is going to be kind of mixed up now," he added.

Chauhan advised people to rely on "more reliable sources" and "more trusted sources of information".

'AI tends to hallucinate a lot'

The NSE chief said AI is currently not being used by NSE in areas such as trading, clearing, risk management or settlement due to its tendency to hallucinate.

"Today's the way AI is, it tends to hallucinate a lot, so we can't use it in, say, trading or clearing or risk management or settlement," Chauhan added.

However, he said AI is being used for areas such as software programming, legal case studies and identifying trends for surveillance and other purposes.

"As and when the technology becomes more robust, we'll start using it in other places," Chauhan also said.

He added that AI could have a significant impact on stock markets going forward, including in transaction processing, analytics and order placement.

NSE chief's advice to investors

Chauhan cautioned investors against relying solely on videos or websites for information.

"Especially if you're an investor, don't believe even videos now, because they may be fake videos," he said.

He also advised investors to verify broker websites through the Securities and Exchange Board of India (Sebi) website, citing the emergence of fake websites that resemble those of brokers.

"Don't believe even in the website of brokers unless they are verified by Sebi," Chauhan said.

He added that investors should also be more cautious about information that appears to come from exchanges, brokers or other sources and verify whether it has actually originated from the claimed source.

Meanwhile, NSE shares, which made their stock market debut today at a 0.84 per cent premium at Rs 1,800 against the initial public offering (IPO) price of Rs 1,785, settled 1.85 per cent higher at Rs 1,818 over the issue price in their maiden trading session.