About the course

Duration: 50 minutes
Tutorial Summary:
This concise, high-impact tutorial introduces the transformative role of Artificial Intelligence (AI) in central banking — from inflation forecasting to real-time data processing and policy decision-making. Tailored for finance students, policy enthusiasts, and young economists, the session unpacks how AI tools like machine learning, natural language processing, and predictive analytics are reshaping how central banks around the world operate. Using India’s RBI and global examples, it also addresses challenges, data governance, and ethical concerns — offering a balanced yet optimistic view of the AI-powered future of monetary policy.

Key Highlights:

• Introduction to AI in Central Banking: Origins, motivations, and why central banks are adopting AI
• Why AI for Inflation Forecasting: Traditional methods vs. AI models; speed, accuracy, and agility
• AI Techniques Used by Central Banks: Machine learning, NLP, sentiment analysis, neural networks
• RBI’s Use of AI: A look at the Reserve Bank of India’s AI applications in macro modeling and supervision
• Global Case Studies: AI initiatives in the Federal Reserve (US), ECB (Europe), and Bank of England
• Data Sources and Processing: High-frequency data, big data pipelines, real-time feeds
• Benefits of AI Forecasting: Faster responses, improved decision-making, policy calibration
• Challenges and Limitations: Data biases, model transparency, legal and ethical concerns
• Future Trends in Central Bank AI: Generative AI, digital twins for economies, scenario testing
• Final Takeaways: Recap of lessons, future skills needed, and institutional readiness