Generative Artificial Intelligence in Central Banking

This technical report discusses the increasing exploration and utilization of generative artificial intelligence (AI) by central banks to enhance their operational activities, including economic analysis, statistical production, and financial supervision. It outlines the capabilities of large language models (LLMs) and the potential of retrieval-augmented generation (RAG) systems to improve the accuracy of AI-generated content. The report identifies three key areas of focus for central banks: the establishment of governance frameworks to manage risks associated with AI, the need for adequate IT resources and interoperable data processes, and the importance of collaboration among central banks and stakeholders in the data ecosystem. It emphasizes that while generative AI presents significant opportunities, it also poses challenges related to data quality and IT infrastructure. The report concludes by highlighting ongoing initiatives aimed at leveraging generative AI effectively and responsibly within the central banking community.