New Delhi, Aug 7 (IANS) Chief Economic Adviser V. Anantha Nageswaran said on Friday that India needs a proactive approach to the safety and security of artificial intelligence in the financial sector as the technology gains wider acceptance. Addressing the ASSOCHAM India International Fintech Festival 2026, he said AI has the potential to strengthen the fintech ecosystem by improving credit assessment, identifying financial stress early and enhancing risk management. He cautioned that policymakers and firms may not have the luxury of waiting for risks to materialise before taking corrective action. Nageswaran said AI will help firms analyse creditworthiness better and flag risks and stress earlier, but recent instances of AI agents acting autonomously highlighted the importance of focusing on safety and security alongside productivity benefits. He stated that the financial sector cannot react later to risks and must be focused on AI's safety and security. He also noted that businesses and policymakers should ensure the pursuit of efficiency and productivity gains through AI does not come at the cost of financial stability or existing safeguards, adding, "With the temptation to take advantage of the potential productivity gains, we should not lose what we already have." The CEA cautioned against drawing firm conclusions about AI's economic benefits while enthusiasm remains high, saying a balanced assessment of costs and benefits would be possible only after current financial market enthusiasm subsides.