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 — from productivity and growth to the stability of the financial system itself. The BIS, often described as the central bank of central banks, uses such work to frame the risks and opportunities its member institutions should weigh as AI adoption spreads.

For markets, the significance lies in the channels through which AI could influence policy. If AI lifts productivity, it may affect growth and inflation dynamics over time; if it concentrates risk in a handful of technology providers or amplifies herding in trading, it could create new vulnerabilities. The BIS has previously flagged that AI-driven trading and lending could intensify liquidity strains during stress.

What to watch: how regulators translate these concerns into supervision and disclosure expectations, and whether firms treat AI risk as an operational issue rather than only a competitive one. The pace of adoption, not the technology alone, will shape the outcome.