New Delhi, Nov. 12 -- The rapid adoption of artificial intelligence (AI), especially generative AI, is no longer a peripheral technological shift, but a profound macroeconomic shock. For the Reserve Bank of India (RBI), tasked with maintaining price stability while nurturing growth in a complex, developing economy, AI presents a dual challenge: it is both a potential source of disinflationary productivity and a tool for refining policy.

Tao Zhang, chief representative for Asia and the Pacific at the Bank for International Settlements (BIS), said at the Global Fintech Fest that AI is transforming not just the private financial ecosystem but how central banks operate. They must now reconcile the risks and benefits of AI, while remaining st...