The report argues that central banks need to How to Build a Long-Term B2B Lead Generation Strategy find a balance between fostering innovation using AI and mitigating the different risks that this technology may generate, the report said. “Good governance schemes for the adoption of AI in the organizations, with a holistic view beyond technology, might help to achieve such a balance. The report, “Governance of AI adoption in central banks, said AI presents central banks with both “huge opportunities and complex risk management challenges.
The technology’s use cases include data analysis
research, economic forecasting, payments, supervision, banknote production and other critical functions of a central bank, according to the report. At the same time, AI presents risks that include data security and confidentiality, “hallucinations and reputational risks, per the report.“A comprehensive risk management strategy can leverage existing risk management models and processes, in particular henan mobile numbers database the well-established three lines of defense model, the report said.
“In incorporating the specific issues around AI and its use cases
risk managers at central banks can make use of the frameworks proposed by a number of international bodies. A good governance framework is key for adopting AI.During a June speech at the BIS annual meeting, Hyun Song Shin, economic adviser and head of the monetary and economic department at BIS, said AI could enhance central banks’ ability to monitor economic trends and detect financial crimes while potentially amplifying market volatility and cyber threats.
AI “has taken the world by storm and set off a golf rush across the economy, with an unprecedented pace of adoption and investment in the technology, Shin said.The BIS for each channel measure overall portfolio includes projects that use AI, Cecilia Skingsley, head of the BIS Innovation Hub, said in a June press release. These projects include Project Aurora, which uses payments data to detect money laundering, and Project Raven, which uses AI to enhance cyber resilience.
Central banks were early adopters of machine learning
and are therefore well positioned to make the most of AI’s ability to impose structure on vast troves of unstructured data, Skingsley said in the release.For all PYMNTS AI coverage, subscribe to the daily AI Newsletter.RecommendedBIS: Central Banks Need ‘Comprehensive Risk Management changsha mobile phone number list Strategy’ for AIMeta to Appeal Against Million EU Antitrust FinePayPal-Backed Formance Raises Million to Grow Open-Source LedgerGallabox Raises Million to Help Small Businesses Create AI AgentsSee More In: AI, artificial intelligence, Bank for International Settlements, banking technology, BIS, central banks, data security, News, PYMNTS News, risk, risk management, Security, Technology, What’s HotMeta to Appeal Against Million EU Antitrust FineBy PYMNTS | January , | European Commission, Meta, Facebook, Facebook MarketplaceMeta says it will fight a million fine levied against the tech giant by the European Union.
A company spokesperson told Bloomberg
News on Wednesday Jan. that Meta was appealing the fine. The penalty came after the EU alleged that Meta was tapping into user data to give its Facebook Marketplace service an unfair advantage.As the Bloomberg report noted, the appeal escalates Meta’s ongoing conflict with the EU over its Big Tech crackdown.
It also follows President Donald Trump’s recent comments that EU fines are “a form of taxation on American companies, a sentiment shared by Meta chief Mark Zuckerberg.The European Commission EC, which is the EU’s enforcement body, announced the fine in November, saying its investigation had determined that Meta gave its online classified ads service a significant advantage over its competitors by automatically offering the users of its social network access to it, regardless of whether they want.
In addition, the EC found that Meta imposed unfair trading conditions on other online classified ads services who advertise on its platforms, allowing it to use data generated by their ads to benefit Facebook Marketplace, the release said.“This is illegal under EU antitrust rules, Margrethe Vestager, the EC’s then-executive vice president in charge of competition policy, said at the time.