Bangladesh Bank is drafting a comprehensive policy to regulate the use of Artificial Intelligence (AI) across the financial sector. The initiative includes plans to build a local Large Language Model (LLM) to ensure sensitive data remains within the country.

Officials say AI-driven tools will support more accurate economic forecasting, including inflation trends, GDP growth projections, and foreign reserve assessments.

Enhancing Security and Efficiency

The central bank expects AI to play a major role in improving banking security. Automated systems could help financial institutions identify fraudulent transactions faster and streamline risk assessments.

Banks adopting AI-based solutions may also provide quicker customer support through improved analysis and digitized services.

Boost for Innovation and Fintech

Experts believe the move will encourage innovation in Bangladesh’s growing fintech landscape. Startups are likely to benefit from clearer regulatory guidelines and improved access to AI frameworks.

The policy, once finalized, is expected to position Bangladesh as an emerging digital finance leader in South Asia.