Central banks must be ready for both the opportunities and challenges that artificial intelligence (AI) brings as they pursue price and financial stability, Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. said, according to the BSP.

Remolona made the remarks during the International Monetary Fund-World Bank Group Annual Meetings and related events in Bangkok, Thailand, from 12 to 18 October.

“Price stability remains the core mandate of central banks. As uncertainty grows and technology evolves rapidly, including AI, we need to consider a wider range of scenarios and think more strategically about the future of Southeast Asia,” he said.

AI on the Regional Agenda

The BSP delegation discussed how AI can boost productivity, innovation and financial inclusion. It also stressed the need to invest in digital infrastructure, build skills and put safeguards in place to manage risks.

Monetary Board Member Jose Querubin, Deputy Governor Zeno Ronald Abenoja and Senior Assistant Governor Edna Villa joined the delegation, which met central bank counterparts, development partners and investors.

The BSP’s Own AI Guidelines

At home, the BSP has already set expectations for how banks and e-wallets use AI.

In June, GMA News reported that it issued governance principles built around five pillars, known as STARS: sustainability, transparency, accountability, responsibility and security.

The principles are voluntary but represent the BSP’s minimum supervisory expectations.

Among other things, they call for institutions to keep humans accountable for AI-driven decisions, Rappler noted.

In July, the BSP also issued guidance urging financial institutions to prepare for more sophisticated cyber threats enabled by advanced AI systems, according to Baker McKenzie.

Featured image: Edited by Fintech News Philippines based on an image by the Bangko Sentral ng Pilipinas (BSP) via its website.