Artificial Intelligence and the economy: implications for central banks
Speech by Mr Hyun Song Shin, Economic Adviser and Head of Research, on the occasion of the Bank's Annual General Meeting, Basel, 30 June 2024.
The advent of large language models has thrust artificial intelligence (AI) into the spotlight. AI has implications for the financial system and its stability, as well as for macroeconomic outcomes. We examine advancements in AI and their effects on the financial sector and the real economy. Central banks are directly affected by AI, both as stewards of monetary and financial stability and as users of the technology itself. To address emerging challenges, central banks must anticipate AI's economic impact and integrate AI in their operations. This would require central banks to come together to form a "community of practice" to share knowledge, data, best practices and AI tools.
