Artificial intelligence, growth and financial stability: challenges for central banks - Bank for International Settlements

The Bank for International Settlements has turned its attention to how artificial intelligence may reshape the terrain central banks operate in, framing AI as a development with implications for both economic growth and financial stability. The BIS, often described as the central bank of central banks, uses its research to flag risks that could affect the institutions responsible for monetary policy and systemic oversight.

For markets, the significance lies in the questions the topic raises rather than any single conclusion. If AI lifts productivity, it could influence growth, inflation and the path of interest rates over time. If it concentrates market power or amplifies herding and volatility, it could complicate the task of keeping the financial system resilient. Central banks may also face new challenges in supervising AI-driven trading, lending and risk models.

What to watch: further BIS research and commentary, how major central banks incorporate AI into their supervisory frameworks, and whether policymakers begin treating AI-related concentration and operational risks as a distinct category of concern.