AI is improving efficiency in governance, with grievances addressed 25% faster, says IT Secretary

Harnessing Artificial Intelligence to Enhance Governance and Financial Inclusion

In a recent address at the Abhay Tripathi Memorial Lecture held at the United Service Institution of India, S. Krishnan, the Secretary for Electronics and Information Technology, highlighted the transformative impact of artificial intelligence (AI) on the public sector. Emphasizing the potential for increased efficiency, Mr. Krishnan revealed that the integration of AI into grievance redressal mechanisms has resulted in resolving public complaints approximately 25% faster.

This improvement is primarily attributed to AI-powered systems within the Centralized Public Grievance Redress and Monitoring System (CP-GRAMS), which streamline the process of addressing citizen concerns and ensure swifter resolutions. Such technological advancements are vital in strengthening accountability and fostering citizen trust in government services.

Beyond grievance management, AI is poised to play a significant role in financial services, particularly in credit assessment and lending. Mr. Krishnan pointed out that formal lending in India remains relatively minimal, especially for small and remote enterprises. While larger businesses may access financing at competitive rates of around 8-9%, smaller firms face higher borrowing costs due to administrative hurdles and perceived risks.

The use of AI-driven data analysis—drawing insights from GST filings and other sources—can accurately assess creditworthiness, facilitating easier access to debt for underserved sectors. This approach promises to lower borrowing costs and promote equitable financial inclusion across the country.

As AI continues to evolve and integrate into governance and finance, it holds the promise of making public services more efficient and inclusive, ultimately contributing to sustainable economic development and better governance outcomes.