The world’s most powerful financial institutions are approaching the artificial intelligence revolution with notable caution, despite mounting pressure to modernize operations and embrace technological innovation. A survey released Wednesday by the Official Monetary and Financial Institutions Forum reveals that most central banks have not integrated AI into their core functions and remain deeply skeptical about its risks.
Hesitation among the experienced
The working group consisted of 10 central banks from Europe, Africa, Latin America and Asia, collectively managing roughly $6.5 trillion in assets. Among the survey’s most striking findings is that institutions with the deepest experience using AI expressed the strongest reservations about its deployment. This pattern suggests that familiarity with the technology breeds caution rather than enthusiasm.
The primary concern centers on whether AI driven behavior could accelerate financial crises rather than prevent them. Central banks worry that automated systems might amplify market movements during periods of stress, potentially turning manageable problems into catastrophic failures. One participant emphasized that while AI can enhance analytical capabilities, ultimate decision making authority must remain with human officials who can exercise judgment during unprecedented situations.
More than 60 percent of respondents indicated that AI tools have not yet become integral to their core operations. This stands in stark contrast to the private sector, where technology companies, retail banks and investment firms have already implemented AI systems that have led to workforce reductions and operational restructuring.
Limited applications so far
Where central banks have adopted AI, the applications remain relatively modest. Most early implementations focus on routine analytical tasks rather than critical functions like risk management or portfolio construction. The technology primarily helps with basic work such as summarizing data, scanning market conditions and processing routine information.
This conservative approach reflects institutional cultures that prioritize stability and reliability over innovation and efficiency. Central banks operate under intense scrutiny and cannot afford the types of errors that might be acceptable in commercial contexts. A flawed algorithm or biased dataset could have profound consequences for monetary policy, financial stability or currency values.
The survey also revealed that digital assets remain firmly outside the investment universe for most central banks. Roughly 93 percent of respondents reported that they do not invest in cryptocurrencies or related instruments. While tokenization attracts some intellectual interest as a potentially useful technology, cryptocurrencies themselves are viewed with considerable caution and skepticism about their role in serious financial systems.
The stubborn persistence of the dollar
Beyond technology questions, the survey illuminated ongoing tensions around reserve currency composition. Central banks increasingly recognize that the global financial system is evolving from a bipolar structure dominated by the dollar and euro toward a more multipolar arrangement with multiple reserve currencies playing significant roles.
Nearly 60 percent of survey participants expressed desire to diversify their holdings away from the dollar. Various factors motivate this sentiment, including concerns about U.S. policy directions under President Donald Trump, whose tariff policies have created uncertainty, and questions about Federal Reserve independence that have unsettled traditional assumptions about American monetary policy.
Yet despite this widespread desire for diversification, the survey found that practical realities keep the dollar firmly anchored as the dominant reserve currency. The unmatched liquidity of U.S. Treasury securities remains the critical factor. No other market offers the combination of depth, reliability and ease of trading that central banks require when managing enormous reserves that must remain accessible during crises.
One participant noted that while the world is transitioning toward a multipolar reserve system, the euro has not yet developed the characteristics necessary to serve as a true alternative anchor currency. China’s yuan has gained ground and is expected to continue increasing its share of global reserves, but it too faces limitations related to capital controls and market access.
Navigating competing pressures
Central banks find themselves caught between competing imperatives. They seek resilience through diversification but also need liquidity that currently exists primarily in dollar denominated assets. They recognize AI’s potential but fear its capacity to amplify systemic risks. These tensions will likely shape central banking for years as institutions slowly adapt to technological and geopolitical transformations.