Mumbai, September 10 (Daily Kiran) : The integration of artificial intelligence (AI) into banking is poised to enhance efficiency and customer service. CS Shetty, the Chairman of the State Bank of India (SBI), highlighted this potential during his address at the Global Fintech Fest 2026 in Mumbai. He noted that AI can provide personalized financial services to thousands of customers. However, as AI evolves from making recommendations to implementing decisions, financial institutions must establish a clear framework for AI agents.
Shetty explained that the banking sector is entering a new phase of AI adoption, which presents significant opportunities. He emphasized that AI should augment human capabilities rather than replace them. While the initial costs of implementing agentic AI might be high, widespread adoption could lead to reduced long-term expenses, ultimately increasing economic efficiency for banks.
To develop strategic capabilities in AI, Shetty stressed the importance of creating foundational AI models. He believes that agentic AI can enable banks to offer more personalized services on a large scale. However, he acknowledged the challenges posed by the diverse and complex market environment in which banks operate.
SBI has been a pioneer in adopting machine learning (ML) models over the years. Shetty pointed out that the next major opportunity lies in deploying AI agents within financial services. The bank already utilizes traditional AI methods for credit assessment and cash flow-based lending.
He also underscored the role of India’s digital infrastructure in facilitating technology adoption. “India has successfully transformed digital infrastructure into trust and then scaled that trust,” he remarked. As agentic AI becomes more integral to banking, financial institutions will need to establish clear regulations regarding the identification and authentication of AI agents, customer consent, and transaction limits.
Shetty concluded by stressing that as AI systems transition from making recommendations to executing decisions, the importance of accountability will continue to grow.
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