AI is both a cyber risk and counterweight, says IDFC First Bank CEO

AI is a double-edged sword for cybersecurity but a major enabler for agricultural credit, says IDFC First Bank CEO V Vaidyanathan. He noted AI can counter cyber threats it creates and improve lending by analyzing unstructured farm data.

AI a double-edged sword for cybersecurity

Artificial intelligence (AI) is emerging as both a cybersecurity risk and a potential counterweight to growing cyber threats, and can become a major enabler for credit for agriculture according to V Vaidyanathan, MD and CEO of IDFC First Bank.

Speaking to ANI on the sidelines of FIBAC 2026 on Tuesday, Vaidyanathan called cyber security "a very serious issue" stressing the need for more vigilance particularly because of the "unknown unknowns" that could emerge as technology evolves.

He added that while artificial intelligence can create new cybersecurity risks, it can also serve as a counterweight by helping detect and address such threats. "If AI is the risk, then AI is also the counterweight," he said.

Vaidyanathan also said IDFC First Bank is raising funds through GIFT City, which can subsequently be leveraged to provide financing to customers. "We are also raising funds in our GIFT City, which we can leverage and give to customers as part of raising FCNR(B)."

AI to improve agri lending

Asked about the risks and opportunities of using AI in credit systems for agribusiness, small businesses and the farming sector, Vaidyanathan said AI could significantly improve agricultural lending by enabling lenders to analyse a wider range of data.

As per Vaidyanathan, AI can quickly capture and process unstructured information, such as a farmer's milk supply, vendors and suppliers, which can help lenders build a more comprehensive picture of the borrower's economic activity.

"AI can very much, very much impact and improve the agri lending because the data points, for example, if you are a farmer, the ability of you to say that how much information has come from your milk supply, who are the vendors, who are the suppliers, all that kind of information, AI can capture much more quicker and much more unstructured data," he said adding, "AI can be a major enabler for credit, especially for bottom impairment, especially for agriculture."

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