As cyber threats continue to evolve in the modern world, central banks are now looking at new technologies to improve their security. According to the recent report by BIS, a current shift in central banks is observed which involves the use of generative AI for cybersecurity. The Bank for International Settlements (BIS), an organization that unites 63 central banks and monetary authorities surveyed 32 of its members concerning their interest and usage of generative AI tools in cybersecurity.
According to the BIS report, 71% of the central banks interviewed have integrated generative AI into the cybersecurity system while 26% plan to do so in the next 1-2 years. Central banks that have incorporated generative AI have noted enhanced performance in identifying and combating cyber threats than in using conventional approaches.
Generative AI has been found useful in terms of response to cyber threats and identification of suspicious patterns and trends. However, central banks also raised concerns about the costs incurred in implementing generative AI solutions. Furthermore, threats such as social engineering, zero-day, and data leakage are still major concerns that those institutions face.
Ai can replace Cybersecurity staff that can be utilized in other initiatives. BIS members include Australia, China, France, Belgium, Japan, South Korea, Italy, Switzerland, the United Kingdom, and India. It also teams up with 7 Central Banks (France, Japan, South Korea, Mexico, Switzerland, the United Kingdom, and the United States Federal Reserve Banks) to look at asset tokenization in monetary systems.
The use of generative AI by central banks is a game changer in cybersecurity. The previously used security solutions are still rather powerful and sufficient but they cannot adapt to the constantly changing threats. Compared to the previous models, generative AI is more proactive. However, for the central banks, the use of generative AI is not limited to the aspect of security. These tools help cybersecurity staff avoid handling repetitive tasks and instead focus on more important matters.
This reallocation of resources can be beneficial in achieving better overall effectiveness and efficiency in managing cybersecurity risk. Furthermore, the application of generative AI in integrating the financial structure may help prevent highly developed cyberattacks. The capital cost and the recurrent expenses may be relatively high in implementing generative AI. Furthermore, it remains a challenge to address the ethical and regulatory angles of using the most sophisticated AI technologies in central banking. Therefore, it is important to ensure that these tools are running in a transparent mode and also respect the provisions of the privacy laws.
As per CoinGabbar, the BIS report analyzes a new trend among central banks to use generative AI for cybersecurity purposes. Although issues like costs and regulations are still present, the opportunities for enhanced threat detection and efficient work are significant. As central banks move forward in incorporating generative AI in their cybersecurity system, the trend is expected to elevate the sector's benchmarks invariably. This proactive approach not only improves their capabilities to defend against cyber threats but also positively impacts the stability of the financial system at the global level. Project Agora is one of the initiatives of the BIS that is actively working on these technologies for a safer and better financial environment in the future.
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