Special Reports

Artificial Intelligence and the Economy: Implications for Central Banks

Image: on bis.org

Key takeaways

  • Machine learning models excel at harnessing massive computing power to impose structure on
    unstructured data, giving rise to artificial intelligence (AI) applications that have seen rapid and
    widespread adoption in many fields.
  • The rise of AI has implications for the financial system and its stability, as well as for macroeconomic
    outcomes via changes in aggregate supply (through productivity) and demand (through investment,
    consumption and wages)
  • 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. To address emerging challenges, they need to anticipate AI’s effects across the economy and harness AI in their own operations.
  • Data availability and data governance are key enabling factors for central banks’ use of AI, and both
    rely on cooperation along several fronts. Central banks need to come together and foster a “community of practice” to share knowledge, data, best practices, and AI tools.
Artificial-Intelligence-and-the-Central-Banks

Further Reading: