The Bank for International Settlements (BIS) proposed in its upcoming 2024 annual economic report that central banks should actively adopt artificial intelligence (AI) technology to cope with its profound impact on the economy and financial system. BIS particularly emphasized that the widespread application of artificial intelligence has the potential to change inflation trends and called on policymakers to integrate artificial intelligence into their operational strategies to promote financial and price stability.
Cecilia Skingsley, head of the BIS Innovation Center, revealed that regulators are actively exploring the application of artificial intelligence in different fields with central bank partners. She pointed out that as early adopters of machine learning technology, central banks can effectively use AI's ability to analyze and structure large amounts of unstructured data.
Application cases include projects such as the Aurora project, which has been carried out by the BIS, which uses AI to detect money laundering activities from payment data, and the Raven project, which aims to enhance the resilience of the network through artificial intelligence technology.
It is reported that the Bank for International Settlements plans to release its "2024 Annual Economic Report" and "2023/24 Annual Report" in full on June 30, which will provide more comprehensive analysis and in-depth insights into the application of artificial intelligence in the economic field.
Central Banks and Artificial Intelligence
In its Annual Economic Report 2024, the Bank for International Settlements delves into the revolutionary impact of artificial intelligence (AI) on central bank operations, including the potential benefits and risks it brings. The report points out that the application of artificial intelligence has significant benefits in improving lending and payment systems, but it may also bring new risks such as sophisticated cyber attacks.
In the report, Hyun Song Shin, head of research and economic adviser at the Bank for International Settlements, emphasized the direct impact of artificial intelligence models on the way central banks work. He believes that the analysis of large amounts of data can provide faster and richer information, helping to identify patterns and potential risks in the economy and financial system.
In addition, the report suggests that central banks can improve their real-time forecasting capabilities through artificial intelligence technology and use real-time data to make more accurate forecasts of inflation and other key economic indicators. However, the report also warns that although artificial intelligence provides powerful analytical tools, the final decision-making process must still be controlled by humans to ensure accountability and transparency.
At the same time, artificial intelligence has shown great potential in identifying financial system vulnerabilities, and it can help regulators manage and mitigate risks more effectively. The Bank for International Settlements believes that as the value of data becomes increasingly prominent, it will become an important foundation for central banks to use artificial intelligence technology to promote central banks to play a greater role in data-driven decision-making.
The impact of artificial intelligence on the economy
In its report, the Bank for International Settlements further analyzed the broad impact of artificial intelligence on the economy, especially in terms of the labor market, productivity and economic growth. The report pointed out that artificial intelligence can have an impact on inflation trends by giving companies the ability to respond more quickly to macroeconomic changes and adjust prices.
The report also emphasizes that the impact of artificial intelligence on economic demand and inflation is closely related to the rate at which unemployed workers find new jobs. In addition, the accuracy of households and businesses' predictions of future benefits from artificial intelligence technology is also a key factor in determining these economic variables. At the same time, in the financial industry, the application of artificial intelligence is expected to greatly improve the efficiency of payments, loans, insurance and asset management, and help reduce costs.
However, the Bank for International Settlements also warned that the introduction of artificial intelligence technology also brings new challenges and risks. The risk of new cyber attacks has increased, and artificial intelligence may exacerbate herd behavior, bank runs and sell-offs in financial markets, posing a potential threat to financial stability. These risks suggest that regulators and financial institutions need to act cautiously when adopting artificial intelligence technology to ensure a balance between technological innovation and risk management. #BIS #人工智能 #CBDC #金融风险
Conclusion:
In its upcoming report, the Bank for International Settlements highlights the transformative potential of artificial intelligence in the financial sector, while also warning of the risks that come with it. Artificial intelligence can not only improve the operational efficiency of central banks and the accuracy of economic forecasts, but may also bring new security threats and market behavior issues. These findings call on policymakers and financial institutions to carefully balance innovation and risks when adopting new technologies.
In the face of the wave of financial innovation led by artificial intelligence, it is crucial to ensure a balance between technological progress and risk control. This requires regulators and industry participants to deepen their understanding of the impact of artificial intelligence and take effective measures to ensure the security and stability of the financial system. At the same time, as we enter a new era of intelligence and data-driven development, responsible innovation will be the key to promoting the sustained and healthy development of the economy.
