Central banks are identified as early adopters of AI, particularly large language models, according to a BIS study.
AI models play a pivotal role in central banking, assisting in information collection, data analysis, and monetary policy decisions.
AI is employed for regulatory oversight, with systems effectively identifying irregular financial transactions to combat money laundering.
The study highlights inherent risks in AI, including biases and challenges with generative models, necessitating human supervision.
Central banks face short-term challenges in training staff for AI, competition for skilled personnel, and potential blockchain integration for data integrity.