84% Fear Catastrophic Data Loss, Yet AI Deployment Outpaces Security Measures
Financial services firms are rapidly adopting AI, but many are prioritizing security over data quality—leading to concerns about accuracy, reliability, and compliance, according to Hitachi Vantara’s State of Data Infrastructure 2024 report.
“Trust is the foundation of India’s BFSI industry. Even a small AI-related error can weaken customer confidence and create regulatory challenges,” said Hemant Tiwari, Managing Director and Vice President, India and SAARC Region, Hitachi Vantara.
The report, based on insights from 231 BFSI leaders, reveals that while 48% prioritize AI security, only 36% focus on data quality, impacting AI accuracy (21%) and availability (25%). Additionally, 71% test AI on live systems, while just 4% use controlled sandboxes—raising concerns about data breaches, compliance failures, and reputational risks.
Key AI Risks for BFSI Firms
- 84% fear catastrophic data loss from cyberattacks or human error.
- 36% worry AI errors could cause security breaches, while 38% fear AI-driven ransomware attacks.
- 32% are concerned about AI-enabled breaches exposing sensitive financial data.
Despite these risks, BFSI firms are aggressively integrating AI for fraud detection, customer service automation, and risk assessment. Experts urge institutions to invest in secure, resilient data infrastructures to balance innovation, governance, and trust.