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Integrating Non-traditional Data and AI into Central Banking: A Canadian Perspective

Author

Listed:
  • James Chapman
  • Ajit Desai
  • Maryam Haghighi
  • James (Jim) C. MacGee

Abstract

Rapid advances in artificial intelligence (AI)—including machine learning, natural language processing, and generative AI—are expanding the ability to extract meaningful insights from non-traditional data sources such as text, speeches, images, and real-time transactions, thereby strengthening policy analysis and operational decision-making. These tools also enable more sophisticated analytical approaches to the study of economic dynamics while creating opportunities to improve efficiency across institutional processes and operations. This paper documents the growing use of non-traditional data and AI at the Bank of Canada and their contribution to deeper insight and operational effectiveness. The experience highlights critical considerations for accelerating the responsible integration of AI into central banking functions, including evolving ways of working and career paths, fostering a robust ecosystem for innovation, and addressing emerging risks. A successful AI strategy must balance innovation with trust, transparency, security, reproducibility, sound model governance, data residency, and effective operational risk management.

Suggested Citation

  • James Chapman & Ajit Desai & Maryam Haghighi & James (Jim) C. MacGee, 2026. "Integrating Non-traditional Data and AI into Central Banking: A Canadian Perspective," Staff Analytical Papers 2026-17, Bank of Canada.
    • Handle: RePEc:bca:bocsap:26-17
    DOI: 10.34989/sap-2026-17
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    JEL classification:

    • C45 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Neural Networks and Related Topics
    • C55 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Large Data Sets: Modeling and Analysis
    • C88 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Other Computer Software
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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