Impact of Technology on the Financial Sector: Opportunities, Challenges, and Implications for Sustainable Development Goal 8 in India

The prime focus of the present study is to explore the socio-economic implications of AI integration in the context of the Indian financial sector. It will also aim to identify the various opportunities and threats associated with this integration and particularly focus on the sustainable development goals of the SDG 8: Decent Work and Economic Growth. The primary objective is, therefore, to employ a purposive sample of 52 financial executives with complementary roles and formal background for the analysis of the level of acceptance of AI integration, what it means in terms of employment possibilities (positive and negative), the deliberate slow process of embracing AI, and the interventions that would have to be implemented to realize SDG 8 thanks to AI. It is observed that many of the respondents hold the view that, while there are some aspects of AI that can lead AI to a democratization, breaking up and streamlining the structure of financial markets and preventing the behavior of a few players, it is also true that modernization in capitalism is rather a power-based exercise. Respondent were fairly optimistic about the potential od AI to bring about inclusion and efficiencies. Costs have been associated with such optimism with respondents observing that various factors such as ‘algorithmic bias’, aspects related to ‘transparency’ as well as, ‘data security’ raises concern, not leaving the specter of jobs being eradicated due to automation either. Even though many of the participants stand in positive light of the possibilities of AI towards the achievement of SDG8, a number of participants envision there will be reduced incorporation of this sector in the society’s overall economic activities within the next few years. Clearly, this development calls for a purposeful and efficient policy formulation involving the government, banks, and education sectors in order to mitigate the disadvantages of AI technology and enhance the benefits of it, so that there is a secure and fair AI-led financial sector development, which will promote the development of the poor and high-growth and encourage grievance- free economic growth in India.