The Bank for International Settlements (BIS) sees great potential in the widespread adoption of generative artificial intelligence (AI), an area that has piqued the interest of many central banks.

A survey conducted by the BIS, an international financial institution representing 63 central banks and monetary authorities, among 32 of its central bank members assessed their interest in incorporating generative AI tools for cybersecurity. According to the report:

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

The BIS foresees all its members embracing generative AI to bolster their internal cybersecurity measures. Central banks that have already embraced generative AI have lauded its efficacy in identifying cyber threats compared to traditional tools.

Furthermore, generative AI tools have expedited banks' responses to cyberattacks and facilitated the detection of suspicious patterns and irregularities. Nonetheless, the primary concern for central banks remains the implementation costs associated with these tools.

Moreover, the BIS report underlined:

"Risks associated with social engineering and zero-day attacks as well as unauthorized data disclosure are the highest concerns."

Central banks unanimously believe that generative AI tools can eventually replace cybersecurity personnel for routine tasks. The BIS expects this transition to "liberate resources" that could be redirected towards other endeavors.

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

Additionally, the BIS has collaborated 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.

Known as "Project Agora," the initiative will build upon a unified ledger concept proposed by the BIS, bridging tokenized commercial bank deposits and tokenized wholesale central bank money.