, automating compliance processes through such tools, conducting risk assessments and monitoring transactions for potential violations could help sharpen compliance and ensure that financial institutions adhere to regulatory frameworks. this helps in reducing compliance costs for regulated entities, while improving the financial ecosystem as a whole. machine readable regulations could be an additional synthesis in the usage of ai. effective use of new technologies is expected to help to detect fraudulent actives in the system in a complex and interconnected environment. fifth, emerging technologies help central banks to design new products and services to cater to specific requirements. for instance, cbdc as a digital form of sovereign currency offers a secure and reliable medium of exchange. apart from enhancing financial inclusion and improving transaction efficiency, it may also help reduce costs and facilitate cross - border transactions. cross country experience 2 / 6 bis - central bankers'speeches central banks have been early adopters of emerging technologies. i will not attempt complete enumeration of central bank practices ; instead, present select experiences to underscore the wide diversity of usage. among advanced economy central banks, the european central bank ( ecb ) has been an early mover in applying these technologies to data collection, assessment and interpretation, and banking supervision. the us federal reserve is exploring the potential of generative ai through an'incubator'programmme with'responsible innovation'at the forefront of its strategy. the bank of england uses ai in the scrutiny of data quality to identify potential indicators of unforeseen economic disruptions. similarly, the deutsche bundesbank employs an unsupervised ml system to identify outliers in significant financial datasets. meanwhile, the banque de france's bizmap initiative leverages these advanced technologies to assist small - and medium - sized enterprises in france as they navigate global markets. many central banks, including the bank of canada, are implementing cloud adoption strategies for data analysis and collaboration which helps them in hassle - free upscaling of computing power3. among emerging market economies, the central bank of malaysia has developed a suptech tool that supports communication with supervised entities with the aim of enhancing both the efficiency of the process and the consistency of the messages conveyed. bank indonesia has been using news articles to enhance the forecasting of labour market dynamics. the approach involves building a statistical index of employment vulnerability computed from a corpus of around 27, 000 monthly news texts covering a period of 23 years and based on natural language processing ( nlp ) techniques

asia. for australia, though, it is a powerful phenomenon. now this is just the exports side. when we consider both imports and exports – and indeed when we include trade in services – the united states and europe remain important for australia ( though less so than china these days ). the united states and europe – along with new zealand – also continue to account for a large proportion of australian investment abroad and are the source of the vast bulk of foreign investment into australia. in fact, the share of outward australian investment going to asia has actually fallen slightly since 2000. moreover, financial developments in the major economies, and especially the united states, are still very important drivers of capital flows, and of shifts in financial and business sentiment. so there are still important links to the major economies. i am not arguing for “ de - coupling ”, if by that idea is meant that somehow the north atlantic countries have ceased to have a significant impact on the global economy, or no longer matter to us. everything is connected, and economic events in the north atlantic countries still matter greatly. but trends in those countries are leavened to no small degree by developments in the asiapacific region, which is progressively becoming both larger and more capable of exerting a degree of independent influence over its own economic performance. it used to be said that when the united states sneezed, asia caught a cold. recently it seems that the united states has contracted pneumonia, while asia sneezed and caught a bad cold, but then recovered pretty quickly. even in the financial field, the size of offshore investments by asian official holders has become quite important, including for the australian dollar. and while the stock of cross border investment between asia and australia remains small compared with that between australia and the united states or europe, that is surely in the process of changing. the point of all this is not to say that somehow australia has been, or will be, “ saved ” by china or asia. the emergence of asia is to our advantage, if we respond to it correctly. but there is no free ride from the global or regional economy and there never will be. nor is it to deny that a country ’ s own policies, for better or worse, and followed over a long period, also make a significant difference to its economic outcomes. there is no escaping responsibility to keep our own house in order. the point, rather, is that we ought to take more than a passing interest in events in our region, and