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Philippines central bank ups interest in machine learning

The Bangko Sentral ng Pilipinas (BSP) has boosted its interest in applications of machine learning (ML) techniques, particularly in the areas of natural language processing, nowcasting, and banking supervision. BSP Governor Benjamin Diokno said the central banks’ interest in ML has been increasing over the years, mainly due to its potential to enhance the existing tools used for regular monitoring as well as its ability to uncover underlying relationships between data to better understand the economy and the financial system. ML is a subfield of artificial intelligence (AI) that involves algorithms that deliver output based on patterns learned from data. Diokno said ML offers diverse opportunities in central banking, especially when combined with techniques from other disciplines, such as econometrics and network science. Diokno also highlighted several challenges associated with ML processes.

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