The Bank for International Settlements (BIS) has called on central banks to embrace artificial intelligence (AI) in anticipation of its significant impact on the economy and financial system.
In a pre-released chapter of its upcoming Annual Economic Report for 2024, the BIS emphasized that the widespread adoption of AI could affect inflation trends and urged policymakers to incorporate AI into their operations to enhance financial and price stability.
The BIS Innovation Hub’s head, Cecilia Skingsley, said the regulator is actively testing AI’s capabilities in various areas in collaboration with central bank partners. She added:
“Central banks were early adopters of machine learning and are well positioned to make the most of AI’s ability to impose structure on vast troves of unstructured data.”
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