constrain model improvement. 19 apparently, central bankers are not the only ones always looking for “ more good data ”! future gains are expected to be driven by the adaptation of ai to specific contexts using proprietary data available only within the confines of individual firms. conclusion in closing, looking ahead, i anticipate an acceleration in productivity grounded in the impressive advances in ai, but substantial uncertainty attends that forecast. such uncertainty arises from the nature of invention, innovation, diffusion, and adaptation of new technologies, as well as from policy decisions that will govern this process. fostering the global innovation ecosystem remains desirable through research and development, advanced education, worker training and retraining, and legal protections for intellectual property. moreover, a consensus needs to be forged on the benefits and costs of regulation of the use of ai in the areas of privacy, compensation for training data, perpetuation and amplification of bias, and fraud. additionally, the ultimate outcomes could benefit from broader inclusion across demographic groups in the startup and research communities and attention to the potential effects on competition of the advantages of incumbent firms. in short, ai will be translated into productivity improvements with “ long and variable lags, ” as we monetary policymakers like to say. the changes we see in the macroeconomy — aggregate output, employment, and income — are the collective effect of see tammy xu ( 2022 ), “ we could run out of data to train ai language programs, ” mit technology review, november 24. - 10 millions of firms, households, and government policymakers thinking through what ai means for them. you might say that, like the mechanical turk, ultimately the human inside the machine is still in charge. my hope is that rising productivity gains will serve as a counterweight to inflation going forward. we will monitor these developments closely. thank you for having me here today. i look forward to your questions.

without any success. ladies and gentlemen, we meet today at a challenging time with many headwinds going forward. the global economy is on a downhill path and financial turbulence continues to affect the masses across the globe. all this started in 2007 / 2008 as the private debt subprime crises related to the us housing market transformed into a systemic financial crisis that spread from the us to the euro area. more recently, this has turned into a sovereign debt crisis. the crisis, now in its fifth year, has morphed into a new phase of a political crisis. in the euro region, important steps have been taken to address the current problems. however, political differences within economies undergoing adjustment and among economies providing support have impeded achievement of a lasting solution. we have already witnessed causalities of these crises. similarly the political processes in the united states and japan are facing challenges in reaching consensus on medium term fiscal adjustments. what we have seen is a complete transformation resulting from the worst crisis of modern times. all these events have challenged the approach of financial leadership, business leadership, economic managers and political leaders. bis central bankers ’ speeches notwithstanding, we also have some bright spots in the form of emerging market economies with positive growth prospects. this is primarily because these economies have dealt with relatively more frequent, though small scale crises on their domestic fronts. of the advanced countries, australia and canada have been least affected by the global financial crisis because of their relatively stricter regulatory regimes and handson approach. the approaches of these economies and their leaders seem more practical and proactive, a trait necessary for leadership and a necessary part of a vision about the future. as mentioned earlier, this conference is significant in the sense that it comes at a time when the financial services sector across the world is in the midst of a crises. since the disruption has become acute, there is a debate over a number of issues relating to management and supervision of the financial services industry. in order to be effective, the concern and tone for risk management must start at the top. you would agree that while the management may get influenced by business targets and short term profitability, the board, representing owner ’ s perspective, always targets for long term viability and sustained growth of the bank. by virtue of this different perspective and its legal powers, the board is better positioned to enhance the role of risk management in a bank. that is why sbp has always emphasized the involvement of the board and made it accountable for establishing enterprise wide risk management