The Bank for International Settlements (BIS) recently published a report indicating a significant uptick in central banks adopting generative artificial intelligence (AI) to bolster cybersecurity measures. The BIS, representing 63 central banks and monetary authorities worldwide, surveyed 32 central bank members to gauge their interest and implementation of generative AI tools for cybersecurity purposes.

According to the report, an overwhelming 71% of respondents have already integrated generative AI into their cybersecurity operations. Furthermore, 26% of central banks have plans to incorporate such tools within the next one to two years. The BIS anticipates that all its member central banks will eventually adopt generative AI to bolster their internal cybersecurity measures.

Generative AI has garnered praise for its effectiveness in detecting cyber threats compared to traditional methods. It has significantly enhanced response times to cyberattacks and facilitated the identification of suspicious trends and anomalies. However, concerns about the costs associated with implementing generative AI tools persist among central banks.

Among the primary cybersecurity risks identified by central banks are social engineering, zero-day attacks, and unauthorized data disclosure. Despite these challenges, central banks unanimously believe that generative AI tools have the potential to replace cybersecurity staff for routine tasks, thus freeing up resources for other strategic initiatives.

BIS members, including central banks from major economies such as Australia, China, France, Japan, and the United States, are actively exploring the adoption of generative AI for cybersecurity purposes. This collective effort underscores the global recognition of the importance of leveraging advanced technologies to mitigate cybersecurity threats in the financial sector.

In addition to cybersecurity initiatives, the BIS has recently embarked on Project Agora, a collaborative effort with seven central banks to explore asset tokenization within the monetary system. This initiative aims to bridge tokenized commercial bank deposits and tokenized wholesale central bank money, representing a significant step toward digital transformation within the financial industry.