'Fully capable of influencing opinion': FM Nirmala Sitharaman raises alarm over Agentic AI

Finance Minister Nirmala Sitharaman has raised concerns over the rapid development of artificial intelligence, particularly agentic AI systems and large language models (LLMs), warning that the technology could create new risks ranging from cyberattacks to manipulation of public opinion and election interference.

Speaking at the Global Fintech Fest 2026, Sitharaman said the pace of AI development requires greater institutional accountability and stronger attention to safety and alignment. She also stressed that regulation should not come at the cost of innovation, particularly in India's rapidly expanding fintech sector.

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Sitharaman highlighted the potential of advanced AI systems to operate with increasing autonomy and said their capabilities could extend beyond conventional technology risks. She specifically pointed to the possibility of AI being used to influence people without their awareness.

"The model that I'm referring to is fully capable of influencing opinion on the ground without people even sensing that they are being influenced. Being a minister and being in politics, I'm clearly seeing it capable of influencing elections," she said.

The Finance Minister said the issue was particularly important because AI-powered systems could potentially be deployed at scale, making their impact difficult to identify or counter once they are used for malicious purposes.

Sitharaman on fintech, emerging technologies and RBI's SRO move

Sitharaman also spoke about the rapid evolution of the fintech sector and the challenge of creating an appropriate regulatory framework for emerging technologies.

She said, "I'm glad, understanding the rapidity with which this sector is moving. This sector, when I say it's a spectrum, it's not one. The model that I'm referring to is fully capable of influencing opinion on the ground without people even sensing that they are being influenced. Being a minister and being in politics, I'm clearly seeing it as capable of influencing elections. I'm therefore glad that just yesterday, September 10, the Reserve Bank of India recognised the Unified Fintech Forum as another self-regulatory organisation for the fintech sector under the SRO-FT framework."

The Reserve Bank of India recognised the Unified Fintech Forum (UFF) as a self-regulatory organisation for the fintech sector on September 10. The move makes UFF the second such self-regulatory body recognised by the central bank and is aimed at strengthening industry standards, accountability and responsible growth within the fintech ecosystem.

Sitharaman's comments come as India is witnessing rapid integration of AI into financial services. The country's fintech ecosystem is increasingly exploring applications involving autonomous AI agents, fraud detection, payments and other financial activities.

The emergence of agentic AI is also prompting regulators and financial institutions to examine how autonomous systems should be authenticated, monitored and held accountable. The National Payments Corporation of India, for instance, is developing a registry for AI agents that may conduct UPI transactions on behalf of users as India explores agentic payments.

AI's double-edged potential

Sitharaman's remarks underline the growing debate over AI's benefits and risks. While advanced AI can improve productivity, detect fraud and expand access to financial services, the same technology can potentially be exploited by malicious actors.

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Other policymakers and financial-sector leaders at the Global Fintech Fest have similarly emphasised the need for safeguards. RBI Governor Sanjay Malhotra has urged fintech companies to treat customer data as a fiduciary responsibility, while SBI Chairman CS Setty has called for a "know your agent" framework as AI systems become increasingly involved in banking.

For Sitharaman, the challenge is therefore to ensure that technological innovation continues while institutions remain prepared for the risks created by increasingly capable AI systems.

She also struck an optimistic note on India's demographic dividend, arguing that the country's young workforce is already contributing to technology development and enterprise creation rather than waiting for traditional measures of productivity to validate its contribution.