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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 <a href="https://www.bis.org/publ/bppdf/bispap145.pdf" target="_blank" rel="noopener noreferrer nofollow">found</a>:
“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.
<figure><img src="https://s3.cointelegraph.com/uploads/2024-05/06c69e66-e2c5-4557-b234-516de9ee8651.png" alt="" title="">
 <figcaption style="text-align: center;">Adoption of generative AI in central banking, as a percentage of respondents. Source: BIS
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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.
<figure><img src="https://s3.cointelegraph.com/uploads/2024-05/92ec9cae-ac77-4086-9c0b-475d577b675d.png" alt="" title="">
 <figcaption style="text-align: center;">Effectiveness of generative AI for defense against cyber threats. Source: BIS
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Additionally, the BIS report highlighted:
<blockquote data-ct-non-breakable="true">
 “Risks related to social engineering and zero-day attacks as well as unauthorized data disclosure are of highest concern.”
</blockquote>
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.
Read Cointelegraph’s overview to <a href="https://cointelegraph.com/news/generative-ai" rel="noopener noreferrer nofollow">learn more about generative AI</a>.
Related: <a href="https://cointelegraph.com/news/bis-cbdc-tokenization-projects-2024" rel="noopener noreferrer nofollow">BIS announces CBDC, tokenization projects for 2024</a>
The <a href="https://cointelegraph.com/news/bis-7-central-banks-explore-asset-tokenization-project-agora" rel="noopener noreferrer nofollow">BIS recently teamed up with seven central banks</a> 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.
Magazine: <a href="https://cointelegraph.com/magazine/bots-airdrops-push-ronin-to-no-2-blockchain-for-daily-users-not-pixels-fans/" rel="noopener noreferrer nofollow">Bots, airdrops push Ronin to No.2 blockchain for daily users — Not Pixels fans</a>

Central banks turn to generative AI for enhanced cybersecurity: BIS

Cointelegraph

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