Artificial Intelligence (AI) in Elections

Why in news?

• Recently, it was found that the widespread application of Artificial Intelligence (AI) is likely to cause a paradigm shift in almost every aspect of an election.

Potential Benefits of AI in Election:

• Campaign Strategies: AI can analyse vast amounts of data to identify key issues, predict voter preferences, and develop targeted campaign messages.
• AI can also help political parties understand voter behaviour, tailor their messages to specific demographics, and optimise their campaign strategies.
• Monitoring Misinformation: AI can analyse vast amounts of data to identify patterns and flag potential misinformation.
• It is particularly useful in monitoring social media platforms for fake news during election periods.
• Voter Registration and Identification: AI can help in the voter registration process and in identifying voters, ensuring that each citizen gets their rightful vote.
• Preventing Election Meddling: AI companies are taking steps to ensure that their technology does not interfere with elections.
• For instance, OpenAI has made commitments to develop tools for detecting misleading AI-generated content and to take action on such content on their services.
• Regulatory Measures: The Union Ministry of IT has issued advisories to AI companies to ensure that their services do not generate responses that are illegal under Indian laws or threaten the integrity of the electoral process.
• Collaboration with Tech Platforms: There is a call for more coordination between the Election Commission of India (ECI) and major tech platforms to combat misinformation and disinformation.
• Addressing AI-Driven Misinformation: AI companies are working on making it more obvious when images are AI-generated and are planning to put an icon on images to indicate it was AI-generated.

Issues related to AI in Elections:

• Spread of Disinformation: However, the use of AI in elections also raises concerns about the spread of disinformation.
• The rapid growth of generative AI, which can create convincing text, images, and videos, has heightened fears that this technology could be used to sway major elections.
• It includes the creation of deep fakes or realistic-looking images that are fabricated.
• Lack of Transparency: Another concern is the inscrutability of AI models. The inner workings of these models are often opaque, making it difficult to understand how they make decisions.
• It can lead to issues of accountability and fairness.
• Undermining Democratic Ethos: The ugly side of AI in elections is its potential to undermine democratic processes.
• Dishonest actors can use AI to manipulate public opinion, spread fake news, and even influence election outcomes.
• Privacy and Data Security: With AI systems collecting and analysing vast amounts of data, there are legitimate concerns about how this data is used and who has access to it.
• Regulatory Concerns: The Indian government has issued advisories to generative AI companies. These advisories mandate that AI systems must not generate responses that are illegal under Indian laws or threaten the integrity of the electoral process.
• Platforms that currently offer ‘under-testing/unreliable’ AI systems to Indian users must explicitly seek prior permission from the central government.
• Ethical Considerations: AI algorithms can potentially perpetuate and amplify existing biases.
• Regulatory frameworks must prioritise developing and deploying unbiased AI systems to prevent this.
• Potential for Misuse: There are concerns about AI being used to influence politics and even convince people not to vote.
• For instance, a robocall using fake audio of a political figure circulated to voters, urging them to stay home during an election.
• Accountability: The accord signed by tech companies to fight AI election interference did not specify a timeline for meeting the commitments or how each company would implement them. It raises questions about accountability and enforcement.

Regulating AI:

• Recognising the potential misuse of AI in elections, the Indian government has issued advisories to generative AI companies, mandating that AI systems must not generate responses that are illegal under Indian laws or threaten the integrity of the electoral process.
• Furthermore, companies offering ‘under-testing/unreliable’ AI systems to Indian users must seek prior permission from the government.
• Global Tech Giants’ Efforts: Major technology companies have signed a pact to voluntarily adopt ‘reasonable precautions’ to prevent artificial intelligence tools from being used to disrupt democratic elections around the world.
• It includes commitments to collaborate on developing tools for detecting misleading AI-generated images, video, and audio, creating public awareness campaigns to educate voters on deceptive content, and taking action on such content on their services.

Conclusion:

While AI holds immense potential in ensuring election integrity, and can play a transformative role in ensuring election integrity, it is equally important to address the associated challenges such as data privacy, algorithmic bias, and the digital divide.

It is crucial to have a robust regulatory framework to guide the use of AI in elections, and need to ensure that the use of AI does not compromise the democratic values of fairness and transparency.

Reserve Bank of India (RBI)

Why in news?

• Recently, the Prime Minister and RBI Governor attended a ceremony marking 90 years of the RBI in Mumbai.

About the Reserve Bank of India (RBI):

• It is the central bank of India, established on April 1, 1935, in accordance with the provisions of the Reserve Bank of India Act, 1934.
• Over the years, the RBI has played a pivotal role in the development of India’s economy.
• It has witnessed both the pre and post-Independence eras and has created an identity around the world based on its professionalism and commitment.

Role and Functions:

• Monetary Policy and Inflation Control: One of the primary roles of the RBI is to control inflation and stabilise the country’s financial system.
• It does this by setting the overnight interbank lending rate, known as the Mumbai Interbank Offer Rate (MIBOR).
• It serves as a benchmark for interest rate-related financial instruments in the Indian market.
• Regulation and Supervision: The RBI is responsible for the regulation and supervision of the country’s financial sector.
• It includes commercial banks, non-banking financial companies, and other financial institutions. The RBI’s regulatory oversight ensures the stability and integrity of the financial system.
• Management of Foreign Exchange: The RBI manages the country’s foreign exchange reserves.
• It involves regulating the foreign exchange market, controlling capital flows, and maintaining the stability of the exchange rate.
• Financial Inclusion and Innovation (Digital Economy): The RBI has been instrumental in promoting financial inclusion and fostering innovation in the financial sector.
• For instance, the introduction of the Unified Payments Interface (UPI) has revolutionised the payments ecosystem across the country.
• Digital Currency: RBI launched the digital rupee, or the e-rupee, that can be used for both person-to-person and person-to-merchant transactions.
• It is a central bank digital currency issued by the RBI.

Challenges:

• Managing Inflation and Interest Rates: The RBI has to strike a balance between controlling inflation and promoting economic growth.
• It involves adjusting the policy repo rate, which can have wide-ranging effects on the economy.
• Regulating the Banking Sector: The RBI faces the challenge of regulating the banking sector, particularly in dealing with the issue of non-performing assets or bad loans.
• The RBI has been working towards resolving this issue, but it remains a significant challenge.
• Dealing with Global Economic Uncertainties: The global economy is facing increased uncertainty due to banking fragility in certain countries and geopolitical tensions.
• The RBI has to navigate these uncertainties while managing India’s foreign exchange reserves.
• Digital Currency: Managing this new form of currency and ensuring its smooth integration into the Indian economy is a new challenge for the RBI.
• ‘Impossible Trinity’ or ‘Trilemma’: The RBI faces the challenge of managing the ‘impossible trinity’ or ‘trilemma’, which refers to the difficulty of having a stable foreign exchange rate, free capital movement (absence of capital controls), and an independent monetary policy all at the same time.
• Other challenges include the impact of new technologies on the financial sector, and navigating the economic disruptions caused by events such as the global financial crisis, the taper tantrum of 2013, demonetisation, and the COVID-19 pandemic-induced disruptions to economic activities.

Conclusion and Road Ahead:

• The RBI’s role in the Indian economy is multifaceted and critical. It has a significant influence on the country’s economic trajectory.
• As the RBI continues to evolve and adapt to the changing economic landscape, it remains committed to ensuring stability and growth for the Indian economy.
• As the RBI enters its 90th year, it must learn from its past, adjust and adapt, and plan for the challenges it could encounter on its journey towards its centenary.
• From dealing with changes in payment mechanisms, and the central bank digital currency, to new sources of risk and ensuring effective regulation and supervision, the central bank must be ready for unforeseen events.