The Bank of Ghana (BoG) is increasingly using Artificial Intelligence (AI), machine learning and big data to improve inflation forecasting, analyse economic trends and identify financial risks earlier.
First Deputy Governor Dr Zakari Mumuni said the adoption of advanced technologies forms part of the central bank’s broader efforts to strengthen monetary policy and financial supervision through better use of data.
Speaking at the 4th Annual Statistics and Data Science Conference in Tamale, Dr Mumuni said the Bank uses machine-learning models alongside conventional economic models to improve its forecasts.
“We also employ machine-learning models to complement standard econometric models in forecasting GDP and performing text-mining analytics,” he said.
He explained that access to more detailed and timely data was also changing the way financial supervisors monitor potential risks.
“Where supervisors previously relied heavily on static monthly spreadsheets requiring manual reconciliation, increasingly granular data can be validated as it arrives, allowing risks to be identified earlier,” he stated.
According to Dr Mumuni, the Bank combines AI and machine-learning tools with conventional econometric methods and its Quarterly Projection Model to monitor developments, assess emerging risks and evaluate possible policy responses.
“Through econometric techniques and our Quarterly Projection Model within a Forecast and Policy Analysis System, we identify emerging trends, assess risks and consider the likely outcomes of different policy choices,” he said.
Despite the growing role of technology, he stressed that AI would remain a support tool and would not replace human judgement in policymaking.
“Technology can strengthen our intelligence, but it does not remove the need for human judgment,” he said.
Dr Mumuni recalled that the Governor, during his swearing-in in February 2025, directed the Bank to adopt a more proactive approach to inflation management using advanced data analytics and AI.
He said the challenge for policymakers was increasingly shifting from accessing information to making useful decisions from the large volumes of data now available.
“The greatest challenge facing policymakers today is no longer a shortage of data, but rather turning an abundance of data into timely, reliable and actionable intelligence,” he stated.
The First Deputy Governor added that the Bank continues to gather information directly from businesses and communities through market price monitoring, as well as business and consumer confidence surveys.
“Long before a survey appears in a published report, our Research Department staff are in markets across the country, including here in Tamale, tracking prices and conducting business and consumer confidence surveys,” he said.
Dr Mumuni also cautioned that the adoption of new technologies should not come at the expense of established statistical standards.
“New data should complement, not replace, properly weighted and nationally representative measures,” he stressed.
He called for closer cooperation between researchers and policymakers, saying effective economic decision-making requires both sides to understand the questions, limitations and practical challenges involved in using data to shape policy.
