Why Artificial Intelligence governance matters for central banks in developing economies

Central banks are modernizing digital payments and financial supervision using AI-enabled analytics and supervisory technology (SupTech) to draw insights from large datasets. In many emerging markets, data protection and governance mechanisms need to evolve to keep pace with these advancements. A World Bank report highlights that supervisory authorities identify data privacy and cybersecurity as key challenges for AI adoption. The opacity in personal data processing increases risks for individuals, as demonstrated by Kenyan courts halting the Huduma Namba Digital ID scheme until proper legal protections were established.