Central banks turn to generative AI for enhanced cybersecurity: BIS

(Coin Telegraph)-29/05/2024

Central banks are increasingly adopting generative AI for cybersecurity, with a BIS report indicating that 71% are already using it and more planning to follow.

The Bank for International Settlements (BIS) believes in the potential for widespread adoption of generative artificial intelligence (AI), an area in which many central banks have developed a strong interest.

The BIS, an international financial institution comprising 63 central banks and monetary authorities, surveyed 32 of its central bank members to assess their interest in adopting generative AI tools for cybersecurity. The report found:

“Over two-thirds (71%) of respondents are already using gen AI, and 26% have plans to incorporate such tools into their operations within the next one to two years.”

The BIS predicts all of its members will adopt generative AI to enhance their internal cybersecurity measures. Central banks that have already implemented generative AI have praised its effectiveness in detecting cyber threats compared to traditional tools.

Moreover, generative AI tools have accelerated banks’ response times to cyberattacks and aided in the detection of suspicious trends and anomalies. However, the most common concern for central banks remains the costs associated with implementing generative AI tools.

Additionally, the BIS report highlighted:

“Risks related to social engineering and zero-day attacks as well as unauthorized data disclosure are of highest concern.”

Central banks unanimously believe that generative AI tools can eventually replace cybersecurity staff for conducting routine tasks. BIS anticipates this move to “free up resources” that could be reallocated for other initiatives.

BIS members include the central banks of prominent economies such as Australia, China, France, Belgium, Japan, South Korea, Italy, Switzerland, the United Kingdom, and India, among others.

The BIS recently teamed up with seven central banks to explore asset tokenization within the monetary system alongside private financial institutions.

France, Japan, South Korea, Mexico, Switzerland, the United Kingdom and the United States Federal Reserve Banks are among the participating countries.

Dubbed “Project Agora,” the initiative will build on a unified ledger concept proposed by BIS that bridges tokenized commercial bank deposits and tokenized wholesale central bank money.