FM Nirmala Sitharaman Raises Concerns Over Agentic AI’s Growing Influence

Finance Minister Nirmala Sitharaman has warned that increasingly autonomous AI systems could influence public opinion and elections, highlighting the need for stronger safeguards without restricting innovation.

Nirmala Sitharaman Warns of Agentic AI Risks, Says It Could Influence Public Opinion and Elections

Finance Minister Raises Concerns Over Rapid AI Development

Finance Minister Nirmala Sitharaman has raised concerns about the rapid advancement of artificial intelligence, particularly agentic AI systems and large language models (LLMs). She warned that increasingly capable AI could create risks beyond conventional cybersecurity threats, including the manipulation of public opinion and potential interference in elections.

Speaking at the Global Fintech Fest 2026, Sitharaman highlighted the need for institutions, regulators and technology companies to take greater responsibility for the development and deployment of advanced AI systems.

She said the rapid pace of technological development makes it important to strengthen AI safety, accountability and alignment while ensuring that excessive regulation does not restrict innovation.

Agentic AI Could Influence People Without Their Knowledge

Sitharaman particularly focused on the growing autonomy of AI systems. Unlike traditional software that generally operates according to predefined instructions, agentic AI can perform tasks, make decisions and interact with digital systems with greater independence.

According to the Finance Minister, this capability could potentially be misused to influence individuals without them realising that AI is shaping their opinions or decisions.

She said advanced AI models could be capable of influencing public opinion at scale and could potentially affect electoral processes.

The concern is significant because AI-driven influence campaigns could be difficult to detect if they are personalised and distributed across multiple digital platforms. Malicious actors could potentially use automated systems to generate and distribute large volumes of targeted content.

AI Regulation Must Balance Safety and Innovation

While highlighting the potential risks, Sitharaman also stressed that India needs to maintain a balance between regulation and technological growth.

The fintech industry is rapidly adopting artificial intelligence for applications such as fraud detection, customer service, financial analysis, payments and automated decision-making. Strong regulation could help address emerging risks, but excessive restrictions could also slow innovation.

Sitharaman therefore called for a regulatory approach that encourages responsible development while ensuring that companies and institutions remain accountable for the systems they deploy.

RBI Recognises Unified Fintech Forum as Self-Regulatory Organisation

Sitharaman also discussed developments in India's fintech regulatory ecosystem. Her comments came shortly after the Reserve Bank of India recognised the Unified Fintech Forum (UFF) as a self-regulatory organisation on September 10 under its SRO-FT framework.

The recognition makes UFF the second self-regulatory organisation recognised by the RBI for the fintech sector.

The move is expected to strengthen industry standards and encourage greater accountability within India's rapidly expanding fintech ecosystem.

Sitharaman linked the development to the need for stronger institutional mechanisms as financial technology continues to evolve at a rapid pace.

India Exploring AI Agents for Digital Payments

The growing use of AI in financial services is also creating new questions about authentication, security and accountability.

India is increasingly exploring the use of autonomous AI agents in digital payments. The National Payments Corporation of India (NPCI) is working on a registry for AI agents that could eventually conduct UPI transactions on behalf of users.

Such developments could make digital payments more convenient by allowing AI systems to perform certain financial tasks based on user instructions. However, they also raise questions about how an AI agent should be identified, authenticated and monitored.

Clear responsibility will also be required when an autonomous system makes an incorrect or unauthorised transaction.

AI Offers Opportunities Alongside Emerging Risks

The Finance Minister's comments reflect the broader global debate surrounding the opportunities and challenges created by advanced artificial intelligence.

AI can potentially improve productivity, strengthen fraud detection, automate routine processes and expand access to financial services. In fintech, autonomous systems could also help customers manage payments and other financial activities more efficiently.

At the same time, the same capabilities could be exploited by criminals or other malicious actors. Risks could include cyberattacks, misinformation, manipulation and unauthorised financial activity.

This makes AI governance increasingly important as systems become more capable and autonomous.

Financial Leaders Call for Stronger AI Safeguards

Other financial-sector leaders at the Global Fintech Fest have also highlighted the importance of safeguards as AI becomes more deeply integrated into banking and financial services.

RBI Governor Sanjay Malhotra has emphasised the responsibility of fintech companies to protect customer data. SBI Chairman CS Setty has also advocated a "know your agent" approach as artificial intelligence becomes more involved in financial transactions.

These discussions indicate that future financial regulation may need to address not only customers and institutions but also autonomous digital agents acting on behalf of users.

Balancing India's AI Ambitions With Responsible Development

Sitharaman's remarks highlight a key challenge for India: encouraging rapid technological innovation while ensuring that increasingly powerful AI systems are developed and deployed responsibly.

With the fintech sector adopting AI at a fast pace, regulators will need to establish appropriate safeguards without unnecessarily limiting experimentation and innovation.

The Finance Minister also expressed optimism about India's young workforce, noting its growing contribution to technology, entrepreneurship and economic development.

As agentic AI becomes more capable, the focus is likely to shift from simply what these systems can do to how they should be governed, monitored and held accountable. For India, maintaining this balance could be critical to ensuring that AI remains a driver of innovation while limiting its potential misuse.

Conclusion

Nirmala Sitharaman’s warning highlights the growing need for responsible AI development as agentic systems become more autonomous and influential. While AI can transform fintech, payments and productivity, stronger safeguards, accountability and monitoring will be essential to prevent misuse. India’s challenge will be to protect users and democratic processes while continuing to encourage innovation and maintain its leadership in emerging technologies.