Artificial Intelligence and Indian Banking sector

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What is Artificial Intelligence (AI) According to WIXEncyclopedia “ AI is a branch of computer science that develops machine systems capable of demonstrating behaviours linked to human intelligence. AI programs use data collected from different interactions to improve the way they mimic humans in order to perform tasks such as learning, planning, knowledge representation, perception and problem-solving ”   Thus, AI is the science of making a computer or a software think intelligently just like a human brain, towards learning how to solve a problem. In a way it helps personalise interaction between a human being and a machine. AI tools are based on three main cognitive skills of learning, replicating and reasoning. AI makes a machine, generally a computer, capable of thinking and responding like a human being. The tasks involving a set of algorithms become automatic through intelligent programming based on learning through experience. Artificial Intelligence (AI) has been stea...
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Interest rate reduction - a myth

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A lot has been written about the impact of interest rate reduction on growth. I think the noise is a result of a mis-understanding of basics. Economic growth is an extension of demand generation. A project's viability depends on whether the goods produced can be sold, and of course at what cost. While computing the cost of goods for the manufacturer, interest component plays a much smaller role as compared to other costs viz. raw material, labour, fuel etc etc If the cost is 100, raw material may be 70 %, labour may be 5 %, power and fuel may be 5 % and other manufacturing costs may contribute another 5%. Suppose the financial costs are also 5 % of total costs, a reduction in 1 % in the interest cost may result in saving of 0.40 % to 0.45 % app. Though this may add to the profits of the manufacturer, it definitely cannot be the guiding factor for the manufacturer to decide as to whether the project per se should be established or not. Therefore to say that a reduction in interest rate shall spur economic growth - I dont think it reflects the correct picture.

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