The growing role of artificial intelligence in central banking took centre stage at the 48th annual meetings of the Association of African Central Banks (AACB) in Nairobi, where Central Bank of Egypt Governor Hassan Abdalla discussed both the opportunities and risks presented by the rapidly developing technology.
The annual meetings are being held in Nairobi from 13 to 18 September, hosted by the Central Bank of Kenya as it marks its 60th anniversary. The gathering has brought together central bank governors from more than 40 African countries, along with representatives of financial institutions, regulators, international organisations and other experts.
An AI-focused high-level conference was held alongside the annual meetings to explore how central banks can adopt the technology while maintaining appropriate standards of security, governance and accountability. The discussions reflect the growing interest among financial authorities in using AI to process increasingly large volumes of information while managing the risks associated with automated systems.
Three broad areas were at the heart of the discussions: the 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 considered practical uses of AI within central banks. These include analysing large and varied datasets, supporting economic forecasting, processing documents, managing institutional knowledge and preparing reports. Such applications could help institutions handle information more efficiently and support officials as they assess economic and financial developments.
For central banks, access to timely and reliable information is essential. Economic indicators, financial-market data, banking-sector information and regulatory reports can generate substantial volumes of material. AI-based tools can potentially assist in organising and analysing such information, although the Nairobi discussions also highlighted the need for safeguards when the technology is deployed in sensitive financial systems.
The readiness of individual African countries to adopt AI was another important issue. Countries differ in their digital infrastructure, technical capacity, data-management systems and availability of skilled professionals. These differences can affect how quickly and safely central banks are able to introduce AI into their operations.
Regional cooperation was therefore highlighted as an important part of developing responsible approaches to AI. Cooperation between African central banks could help institutions exchange experience, strengthen technical capacity and work towards common approaches to governance and risk management.
Abdalla’s participation in the Nairobi discussions comes as the Central Bank of Egypt expands cooperation and capacity-building 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. Cooperation with those institutions has included AI and digital transformation, as well as crisis management, banking supervision, and payment and cash systems.
Egypt is also seeking to expand its wider AI infrastructure. The country is looking for investment in AI data centres while developing cloud-computing and other digital infrastructure as part of efforts to strengthen its position as a regional technology hub.
The country’s National Artificial Intelligence Strategy for 2025–2030 sets out a broader framework for developing its AI ecosystem. The strategy includes improving data infrastructure, encouraging innovation and expanding the use of AI across government and economic activities.
Cybersecurity remains a major concern as AI adoption expands. According to the report, cyberattacks in Egypt increased by 53 per cent in 2025 amid the growing misuse of AI tools. The figure underlines the security challenges facing governments and financial institutions as increasingly sophisticated digital technologies become more widely available.
For central banks, cybersecurity is particularly significant because their systems handle sensitive financial and economic information and play a critical role in maintaining confidence in the financial system. The Nairobi discussions therefore placed AI adoption alongside questions of risk management, governance and security rather than treating technological development as an isolated issue.
Egypt has also set an ambitious target for the contribution of AI to its economy. The country aims for AI to account for 7.7 per cent of gross domestic product by 2030. It plans to train 30,000 AI specialists while also increasing public awareness and developing AI-related skills among government employees and the wider population.
The country’s efforts extend beyond domestic development. 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 designed to strengthen cooperation among African central banks and support more resilient financial systems.
The Nairobi meetings are addressing several wider challenges facing African central banking alongside the AI agenda. These include strengthening monetary policy frameworks, developing domestic financial markets, identifying alternatives to external financing and creating more integrated pan-African payment systems.
The discussions reflect the increasingly interconnected nature of technology, monetary policy, financial supervision and economic resilience. As African central banks consider greater use of AI, questions surrounding data, cybersecurity, institutional capacity and responsible governance are likely to remain central to the debate.
The annual meetings are scheduled to conclude with the Association of African Central Banks Assembly of Governors. The assembly will consider decisions relating to the association’s activities, technical committees and working groups, bringing together the wider discussions on financial stability, cooperation and technological development across the continent.