Central Banks Embrace Generative AI for Cybersecurity Enhancement, BIS Report Reveals

A recent report by the Bank for International Settlements (BIS) reveals that central banks are increasingly turning to generative artificial intelligence (AI) for enhanced cybersecurity measures, with 71% of surveyed central banks already utilizing such tools, and an additional 26% planning to incorporate them within the next one to two years. The BIS, which surveyed 32 central bank members, predicts that all of its members will eventually adopt generative AI to bolster internal cybersecurity efforts. Generative AI has been praised for its effectiveness in detecting cyber threats, accelerating response times to attacks, and identifying suspicious patterns and anomalies. However, concerns about the costs associated with implementation persist among central banks, despite the consensus that generative AI tools have the potential to eventually replace cybersecurity staff for routine tasks. This move is expected to free up resources for other initiatives. BIS members, including central banks from major economies like France, Japan, South Korea, and the United States Federal Reserve Banks, are actively exploring asset tokenization within the monetary system through initiatives like "Project Agora," which aims to bridge tokenized commercial bank deposits and tokenized wholesale central bank money.