Business · Sri Lanka Bureau
Central banks must govern AI carefully to maintain public trust, IMF warns
The International Monetary Fund's Chief Information Officer has called on central banks to adopt artificial intelligence with robust governance frameworks and human oversight. The warning came as financial institutions worldwide grapple with integrating emerging technologies into their operations.
LSN Sri Lanka ·
Central banks must implement strict governance protocols and maintain human oversight when deploying artificial intelligence to prevent new technologies from undermining public confidence in financial systems, according to Shirin Hamid, Chief Information Officer of the International Monetary Fund.
Hamid delivered the remarks during the 76th Anniversary Oration of the Central Bank of Sri Lanka in Colombo on Friday, highlighting the risks that rapid technological advancement poses to financial stability and institutional credibility.
The IMF official warned that without proper safeguards, the integration of AI into banking and monetary operations could create vulnerabilities that erode trust in central banking institutions across the region. She emphasized that technological adoption must be balanced with transparent frameworks that ensure accountability and maintain the human judgment essential to financial decision-making.
The message reflects growing concerns among global financial regulators about the speed of AI implementation in the banking sector, with central banks facing pressure to modernize their operations while protecting financial stability and public confidence.
As developing economies in South Asia accelerate digital transformation efforts, central banks are seeking guidance on best practices for AI governance that align with international standards while addressing local financial conditions and risks.