TLDR: Joachim Nagel, President of the Deutsche Bundesbank, announced that generative AI is now widely available to staff, augmenting processes across nearly all business areas from document drafting to advanced data analysis. The central bank aims to leverage AI’s potential for economic forecasting, risk assessment, and proactive financial supervision, while emphasizing the need for robust governance, cross-border collaboration, and a culture of innovation and transparency.
Joachim Nagel, President of the Deutsche Bundesbank, delivered a keynote speech at the BIS Innovation Summit on September 9, 2025, in Basel, focusing on ‘Future-proofing Central Banks’. A central theme of his address was the transformative potential of artificial intelligence, particularly the broad availability of generative AI to Bundesbank staff. This technology is already enhancing existing processes across almost every business area, complementing previous work that relied solely on machine learning.
Nagel highlighted that AI applications are supporting critical functions such as banking supervision and economics, as well as a wide range of internal and administrative services. He stated, ‘The potential of AI is vast, and it is enhancing the way we work as a symbiosis between efficiency and responsibility.’ Beyond operational improvements, AI is expected to open new possibilities for core mandates, including monetary policy, where AI-driven models can offer a deeper understanding of economic variable interactions, leading to more refined policy responses. In financial supervision, AI is anticipated to identify emerging risks in real-time, enabling proactive rather than reactive measures.
The Bundesbank recognizes the importance of striking a balance between innovation and caution. This necessitates robust governance frameworks and a commitment to ongoing research and dialogue. The institution is actively collaborating with experts from academia, industry, and international partners to ensure the benefits of AI are harnessed while mitigating associated risks. Furthermore, there is a strong emphasis on investing in the skills and expertise required to effectively leverage AI and fostering a culture of openness and innovation within the workforce. Nagel underscored the need to design transparent systems, allowing colleagues to verify and trust the AI tools they utilize, and to equip them with the necessary skills for effective use.
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Nagel also touched upon the regulatory landscape, noting the European Union’s AI Act as a significant step towards ensuring safe and trustworthy AI development and deployment. This framework categorizes AI applications based on risk levels, aiming to mitigate potential harm while fostering innovation. The speech concluded by emphasizing that the transformative potential of artificial intelligence, alongside cross-border collaboration and foresight, forms the foundation of a forward-looking and resilient central banking system.
