CBK explores use of AI agents in banking operations

NAIROBI, Kenya, Nov 2 – The Central Bank of Kenya (CBK) is exploring the use of artificial intelligence agents to automate some banking operations, as the regulator seeks to adopt the technology while managing risks associated with its use. CBK Director of Research Robert Mudida said the regulator was considering applications in areas such as payments but would maintain human oversight over decisions made using the technology. Agentic AI refers to software systems that can independently plan and carry out multi-step tasks using digital tools, rather than simply responding to individual user prompts. “Agentic AI is at the highest level because these agents are being trained to take over critical decisions that are being done by human beings. It has great opportunities but also great dangers, so we are going slowly, but there are opportunities of using agents in areas like payments,” Mudida said. He said the CBK was also exploring more than 300 artificial intelligence applications to improve operational efficiency, including testing a new AI-powered chatbot. “We are trying to move as fast as possible, but we are very aware of AI governance, which is very important to ensure the security of data,” he added. The CBK’s Research Department is already using AI for microforecasting in volatile economic conditions and nowcasting to fill data gaps and provide the Monetary Policy Committee with near-real-time information on the state of the economy. The regulator’s exploration of AI agents comes as financial institutions increasingly use artificial intelligence to support payment processing, fraud detection, credit risk assessment and customer service. Mudida said the CBK was weighing the potential benefits of the technology against risks, with data security, governance and regulatory compliance remaining key considerations.