“Urgent Need” For Central Banks to Adapt to AI: BIS

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REGULATION “Urgent Need” For Central Banks to Adapt to AI: BIS

The Bank of International Settlements, known as the central bank for central banks, said there’s an “urgent need” by policymakers to better understand how AI is impacting the economy.

Central bankers also need to leverage the technology to help monitor data in real time to better track inflation, according to a Tuesday report.

AI has the potential to significantly enhance efficiency and lower costs in the financial sector, particularly in back-end processing, regulatory compliance and customer service, according to the BIS. For example, software developers can code more than twice as many projects per week when using LLMs through the GitHub Copilot AI.

The technology can also create sentiment indexes and detect money laundering. An LLM fine-tu…