Shin Hyun-song, BIS Director: "Central Banks Must Strengthen Cooperation for AI Utilization"

There has been a suggestion that central banks should strengthen cooperation with private and public institutions to utilize artificial intelligence (AI). It is argued that central banks should move beyond their traditional role of collecting and providing data to take on a complex role as producers, users, and disseminators of data.

Lee Chang-yong, Governor of the Bank of Korea, and Shin Hyun-song, Economic Advisor and Head of the Research Department at BIS, are having a dialogue on the topic "Changes in the Economic Paradigm and Korea's Response Measures" at the 1st Bank of Korea-Korea Chamber of Commerce and Industry Joint Seminar held on the 1st at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul. Photo by Hyunmin Kim kimhyun81@

Shin Hyun-song, Head of the Research Department and Economic Advisor at the Bank for International Settlements (BIS), made these remarks on the morning of the 17th at the conference hall on the 2nd floor of the Bank of Korea annex in Jung-gu, Seoul, during an AI conference jointly hosted by BIS, the Financial Services Commission, and the Bank of Korea.

In his keynote speech titled "AI and the Economy: Implications for Central Banks," Shin said, "Today, AI can solve problems that were previously unsolvable based on vast data and computational power," adding, "Central banks have also become users of AI, employing it for nowcasting to make short-term forecasts of macroeconomic indicators or to detect money laundering structures."

He stated that the role of central banks as users of data will grow beyond their traditional role as data providers. Shin explained, "Traditionally, most data has been collected and stored by statistical agencies, and central banks have played the role of supplying data as statistical institutions. However, in the AI era, central banks inevitably have to use unstructured private sector data, so the definition of data must be broadened." He continued, "It is now time to consider the proportion of internal data versus external (private) data that central banks will utilize."

He emphasized that central banks must simultaneously fulfill the roles of data providers, users, and disseminators. Shin said, "Data sharing has become more difficult recently due to heightened sensitivity from geopolitical issues, but central banks must overcome this and cooperate," adding, "As sound data governance, metadata, and other data frameworks become increasingly important, cooperation among central banks will become even more necessary." He also added, "Central banks and public institutions should create a community of practice related to AI."