BIS Reports Urges Central Bank Engagement with AI

The Bank for International Settlements (BIS) has published a report stating that central banks should be using Artificial Intelligence (AI) to improve their analytical tools.

The impact of AI should, in due course, have profound affects on economies, with repercussions for inflation dynamics – financial systems, labour markets, productivity and economic growth. The BIS suggests that AI will allow central banks to identify vulnerabilities in financial systems, manage risks and predict inflation and economic variables with its ability to assess vast amounts of data fast.

With widespread adoption, it could enhance firms’ ability to adjust prices faster in response to macro-economic changes. AI will also bring risks given that it can be misused in pursuit of profit and criminals and states will use it too.