Mumbai, Aug. 11 -- State Bank of India chairperson C.S. Setty on Tuesday warned that the wider use of artificial intelligence (AI) is creating new vulnerabilities for banks, and that oversight, model risk, and human accountability will have to be rethought as systems become more autonomous.

"Fraud can evolve at a speed that conventional systems may struggle to match," Setty said at FIBAC 2026, warning that Indian banks will have to strengthen their defences at the same time as they widen their use of AI.

He said increased use of the technology is introducing new vulnerabilities across the sector, and that more sophisticated technology can create even more sophisticated cyber threats.

He also called for a rethink of how banks supervise ...