India is set to lead the global AI revolution in financial services, leveraging its extensive digital public infrastructure to embed AI across banking and fintech systems, as new research highlights shifts from pilot projects to mainstream integration.
India’s fintech sector is moving into a new phase in which artificial intelligence is no longer being treated simply as a back-office efficiency tool, but as a layer of intelligence that can help financial services systems act, learn and adapt. A joint paper by ASSOCHAM and KPMG in India, released at ASSOCHAM’s India International Fintech Festival, argues that the country is well placed to lead that transition because of its digital public infrastructure, wider connectivity and large pools of digital data.
The report, titled “Beyond digital infrastructure”, says India’s established building blocks, including digital identity, instant payments, consent-based data sharing and secure digital records, create conditions for AI to be deployed at scale across banking and wider financial services. That argument builds on KPMG’s earlier February report on AI for Bharat, which also pointed to Aadhaar and UPI as foundations for broader AI adoption, alongside expanding access to compute and talent.
KPMG’s Akhilesh Tuteja said India’s digital finance system has been shaped by public infrastructure, regulatory support and a strong culture of innovation. He argued that AI is now emerging as the next major force, helping financial firms make faster decisions, personalise services and automate more of their operations. Hemant Jhajhria made a similar case, saying that the past decade had been about building trust at population scale and that AI is becoming the intelligence layer that turns transaction, identity and behavioural data into action.
The paper says the shift is already moving beyond pilot projects as banks and other institutions embed AI in customer service, fraud detection, compliance, risk management and decision-making. It calls for more compute capacity, tighter governance around privacy and cybersecurity, and wider use of AI in lending, underwriting and claims processing. The report also stresses the importance of voice-led and vernacular interfaces, which it says will be critical if AI is to widen access rather than deepen existing gaps.
The broader policy backdrop is also becoming more supportive. At an ASSOCHAM AI event in New Delhi, S. Krishnan of the Ministry of Electronics and Information Technology highlighted government initiatives including the AI Mission, the National Supercomputing Mission and the India Semiconductor Mission. Meanwhile, KPMG’s July white paper on the AI decade warned that many companies have invested in pilots and training without redesigning their operating models, a point that gives additional weight to the new fintech report’s argument that India will need governance, infrastructure and organisational change if it is to turn AI promise into durable financial-sector gains.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
