The growing use of artificial intelligence in central banking has emerged as a key topic at the 48th annual meetings of the Association of African Central Banks (AACB) in Nairobi, where Central Bank of Egypt Governor Hassan Abdalla discussed the opportunities and risks linked to the technology’s expansion across financial systems.
The annual meetings are taking place in Nairobi from 13 to 18 September and are being hosted by the Central Bank of Kenya as it marks its 60th anniversary. Central bank governors from more than 40 African countries are attending the gathering, alongside experts, financial institutions, regulators and international organisations.
A high-level conference on artificial intelligence was held alongside the main meetings to examine how central banks could use the technology while ensuring that its deployment remains secure, responsible and appropriately governed.
Discussions centred on three broad areas. These were the potential use of AI in monetary policy and financial stability, its application in banking supervision and financial integrity, and its role in governance and risk management.
Participants also looked at practical uses of AI within central banks. These include analysing large and diverse datasets, supporting economic forecasts, processing documents, managing institutional knowledge and preparing reports. Such applications could help financial authorities handle substantial amounts of information more efficiently and make greater use of data available to them.
The possible benefits of AI are particularly relevant to institutions that routinely process economic, financial and regulatory information. Central banks need to assess a wide range of indicators when monitoring economic conditions and financial stability. AI-based systems could assist with organising and analysing such material, although the discussions also underlined the need for safeguards around their use.
The conference examined the readiness of individual African countries to adopt AI and the challenges they face in doing so. Differences in digital infrastructure, technical expertise, data governance and institutional capacity mean that countries may have different levels of preparedness.
Regional cooperation was consequently highlighted as an important element in developing common frameworks for responsible AI use across African financial systems. Sharing expertise and building capacity could help central banks address common challenges as the technology becomes more widely adopted.
Abdalla’s participation comes as the Central Bank of Egypt expands its cooperation and capacity-building efforts with other African central banks in areas including digital transformation, financial technology, data governance and cybersecurity.
The Egyptian central bank has shared expertise with institutions such as the Bank of Ghana and the Bank of Tanzania. Its cooperation with those institutions has covered AI and digital transformation, as well as crisis management, banking supervision, and payment and cash systems.
Egypt is also working to strengthen its wider AI infrastructure. The country is seeking investment in AI data centres and expanding cloud-computing and other digital infrastructure as part of efforts to strengthen its position as a regional technology hub.
These efforts are supported by Egypt’s National Artificial Intelligence Strategy for 2025–2030. The strategy aims to develop the country’s AI ecosystem, improve data infrastructure, encourage innovation and expand the use of AI across economic and government activities.
As AI adoption grows, cybersecurity has become a central concern. According to the report, cyberattacks in Egypt increased by 53 per cent in 2025 amid the growing misuse of AI tools. The development has added to concerns over the security implications of increasingly accessible and sophisticated digital technologies.
For financial institutions, the issue is particularly significant because central banks and other regulators manage sensitive economic and financial information. Greater use of AI therefore requires attention not only to efficiency, but also to data protection, cybersecurity, governance and risk controls.
Egypt has set a target for AI to contribute 7.7 per cent of gross domestic product by 2030. The country also plans to train 30,000 AI specialists while increasing public awareness and developing AI-related skills among government employees and the wider population.
Egypt’s regional financial cooperation has also included new digital initiatives. In early August, the Central Bank of Egypt and the Association of African Central Banks launched a digital portal for the African Financial Stability Committee. The initiative is intended to strengthen cooperation among African central banks and support more resilient financial systems.
The Nairobi meetings are covering a wider range of issues affecting African central banking beyond AI. These include stronger monetary policy frameworks, the development of domestic financial markets, alternatives to external financing and the creation of more integrated pan-African payment systems.
The discussions place AI within a broader debate over how African financial authorities can modernise their operations while maintaining financial stability and effective oversight. As central banks consider adopting new technologies, questions around institutional readiness, cybersecurity, data management and responsible governance remain closely linked to the potential benefits of AI.
The annual meetings are scheduled to conclude with the Association of African Central Banks Assembly of Governors. The assembly will consider decisions concerning the association’s activities, technical committees and working groups.
