Should Central Banks Care About Artificial Intelligence? A Review of the Literature

This article provides a structured review of the rapidly growing literature on the implications of artificial intelligence (AI) for central banking and proposes an organizing taxonomy of the main macro-financial and institutional channels discussed in recent contributions. As a general-purpose technology, AI has the potential to influence productivity growth, price-setting behavior, inflation dynamics, and the transmission of monetary policy, while its diffusion in the financial system may introduce new sources of systemic risk through algorithmic coordination, model opacity, and cyber vulnerabilities. The article synthesizes recent contributions from international financial institutions and academic research to organize these channels within a coherent macro-financial framework. It also reviews documented applications of AI within central banks, including macroeconomic forecasting and nowcasting, supervisory technology, payments oversight, and internal information processing. Attention is given to the emerging literature on African central banks and other emerging market economies, where AI offers opportunities to alleviate data constraints but also raises challenges related to skills, infrastructure, and governance. By organizing and critically assessing existing evidence, the article clarifies why AI constitutes a structural issue for central banking and identifies key areas for future research on monetary and financial stability.