The Bank for International Settlements (BIS) sees significant potential for the widespread adoption of generative artificial intelligence (AI), an area of growing interest among central banks. In a recent survey of 32 central bank members, the BIS found that over two-thirds (71%) are already using generative AI tools, while 26% plan to incorporate them within the next one to two years.
The BIS, an international financial institution comprising 63 central banks and monetary authorities, anticipates that all of its members will eventually adopt generative AI to bolster internal cybersecurity measures. Central banks that have already implemented these tools report enhanced effectiveness in detecting cyber threats compared to traditional methods.
Generative AI has notably improved response times to cyberattacks and aided in identifying suspicious trends and anomalies. Despite these benefits, central banks are concerned about the costs associated with implementing generative AI tools.
The BIS report also highlighted significant risks, including social engineering, zero-day attacks, and unauthorized data disclosure. Nonetheless, central banks believe that generative AI can eventually handle routine cybersecurity tasks, freeing up resources for other initiatives.
Prominent BIS members include the central banks of Australia, China, France, Japan, South Korea, Italy, Switzerland, the United Kingdom, and India.
In related developments, the BIS has teamed up with seven central banks to explore asset tokenization within the monetary system, alongside private financial institutions. Dubbed “Project Agora,” this initiative will build on a unified ledger concept proposed by the BIS, bridging tokenized commercial bank deposits and tokenized wholesale central bank money.
The participating countries in Project Agora include France, Japan, South Korea, Mexico, Switzerland, the United Kingdom, and the United States Federal Reserve Banks.
