The Bank for International Settlements (BIS) has issued new guidance on artificial intelligence (AI) adoption by central banks. The report, developed by BIS member central banks in the Americas within the Consultative Group on Risk Management (CGRM), outlines key considerations for governance, risk management, and implementation.
The guidance covers a wide range of AI use cases in central banking, such as data analysis, research, economic forecasting, payments, supervision, and banknote production. It also identifies key risks such as data security concerns, AI model errors, and reputational challenges.
AI-specific considerations into existing risk management models
The report recommends that central banks adopt an adaptive governance framework and integrate AI-specific considerations into existing risk management models. The framework is designed to align with international best practices while allowing for flexibility in AI implementation.
The BIS Americas Office acted as the secretariat for the report, which was developed with input from the central banks of Brazil, Canada, Chile, Colombia, Mexico, Peru, and the United States. The guidance aims to support central banks as they navigate the complexities of AI adoption and ensure the responsible deployment of emerging technologies in financial systems.
Alejandro de los Santos from the Bank of Mexico, co-leader of the Artificial Intelligence Task Force, said: “Artificial intelligence is transforming the way central banks operate, but with these opportunities come risks that must be carefully managed. Our report provides a governance framework that central banks can use to develop AI responsibly while ensuring financial stability and security.”
Angela O’Connor from the BIS, also co-leader of the Artificial Intelligence Task Force, said: “Central banks must be prepared to address the risks associated with AI, from data security to potential model failures. Our framework outlines ten practical actions that institutions can take to implement AI in a safe and effective manner.”
In its 2024 Annual Economic Report, the BIS emphasized that central banks must get a better grip on artificial intelligence both to gauge its economic impact and to harness the technology for their own operations. The report stated: “Central banks are directly affected by AI’s impact, both in their role as stewards of monetary and financial stability and as users of AI tools.”
The BIS also highlighted the importance of data availability and governance in enabling central banks to effectively use AI. The report noted: “Data availability and data governance are key enabling factors for central banks’ use of AI, and both rely on cooperation along several fronts.”
They also underscored the need for central banks to collaborate and share knowledge on AI adoption. The report recommended: “Central banks need to come together and foster a ‘community of practice’ to share knowledge, data, best practices and AI tools.”
