The Bank of Ghana (BoG) is turning to Artificial Intelligence (AI) and machine-learning technology in a major push to improve how it predicts inflation and gathers economic information across the country.
The move signals a significant shift in the central bank’s approach to economic forecasting as policymakers increasingly rely on technology to process vast amounts of data and identify emerging risks before they become major challenges.
First Deputy Governor of the Bank of Ghana, Dr Zakari Mumuni, disclosed that the central bank has deployed AI as part of broader efforts to strengthen its modelling capabilities, improve economic forecasting and support more informed monetary policy decisions.
AI Enters Ghana’s Inflation Fight
Speaking at the 4th Annual Statistics and Data Science Conference in Tamale, Dr Mumuni explained that the Bank is using advanced technological tools to improve the accuracy of its inflation predictions.
According to him, AI has become an important component of the Bank’s wider adoption of modelling tools and big data technologies.
The First Deputy Governor said these technologies have helped the Bank improve its forecasts, including predictions made ahead of official economic data releases.
This could give policymakers an important advantage by allowing them to detect changes in price pressures and other economic conditions before conventional statistics become available.
Dr Mumuni noted that the Bank also uses machine-learning models to complement traditional econometric approaches in forecasting gross domestic product and conducting text-mining analytics.
The development comes at a time when accurate and timely economic information remains critical for monetary policy decisions.
BoG Moves Beyond Traditional Economic Models
The Bank of Ghana is not abandoning conventional economic models. Instead, it is combining established econometric techniques with newer technologies to strengthen its forecasting framework.
Dr Mumuni said the Bank uses its Quarterly Projection Model within a Forecast and Policy Analysis System to examine economic developments, identify emerging trends and assess potential risks.
The system also allows policymakers to consider the likely consequences of different policy choices before decisions are taken.
The integration of AI into this process could give the Bank another layer of intelligence when assessing inflation, economic growth and other key indicators.
However, Dr Mumuni stressed that technology will not replace human judgment. “Technology can strengthen our intelligence, but it does not remove the need for human judgment.”
That warning highlights an important point. While AI can process enormous quantities of information at remarkable speed, monetary policy decisions still require interpretation, experience and careful consideration of economic conditions.
Big Data Becomes a New Weapon
For the Bank of Ghana, the challenge is increasingly about making sense of the enormous quantity of information available rather than simply obtaining data.
Dr Mumuni said policymakers are facing an environment where data is abundant, but transforming that information into useful intelligence remains difficult.
“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.”
Dr Zakari Mumuni
This means AI and big data could become increasingly important tools for the central bank as it seeks to detect economic developments faster.
From prices and business conditions to consumer sentiment and financial sector information, the volume of available data continues to expand.
The ability to process these signals quickly could help policymakers respond more effectively to emerging economic pressures.
AI Also Changes Financial Supervision
The Bank’s technology drive extends beyond inflation forecasting.
Dr Mumuni revealed that technological advances are also changing the way financial supervision is conducted.
Previously, supervisors relied heavily on static monthly spreadsheets that often required manual reconciliation. The Bank is increasingly moving toward more granular data that can be validated as it arrives.
This allows potential risks to be identified earlier.
The development could strengthen financial sector monitoring by reducing reliance on delayed reporting and manual processes.
For a banking sector where emerging risks can develop rapidly, faster access to reliable information could prove crucial.
BoG Still Has Boots on the Ground
Despite the growing role of AI, the Bank of Ghana continues to depend heavily on information gathered directly from communities and businesses.
Dr Mumuni said Research Department staff regularly visit markets across the country to monitor prices and conduct business and consumer confidence surveys.
He pointed specifically to Tamale and other locations where staff gather information before official surveys are published.
This means the Bank’s forecasting strategy combines advanced technology with information collected directly from Ghanaian households, businesses and markets.
Dr Mumuni said this approach ensures that when the Monetary Policy Committee meets, its decisions are informed by economic experiences across Ghana rather than conditions in Accra alone.
Technology Must Not Replace Sound Statistics
While advocating greater use of AI, Dr Mumuni also warned researchers and statisticians against allowing new technologies to undermine established statistical principles.
He urged professionals to ensure that new data complements properly weighted and nationally representative measures.
The message is clear: AI can enhance economic intelligence, but the quality and representativeness of the underlying information remain critical.
He also called for stronger cooperation between researchers and policymakers.
According to him, researchers need to understand the questions confronting policymakers, while policymakers should remain open to researchers who challenge existing interpretations of economic data.
A New Era for Ghana’s Monetary Policy
The Bank’s adoption of AI reflects the broader vision announced by Governor Dr Johnson Asiama when he was sworn into office in February 2025.
The Governor had pledged that the Bank would adopt a more proactive and precise approach to managing inflation by leveraging advanced data analytics and artificial intelligence.
That ambition is now taking concrete shape.
As Ghana continues to grapple with the need to maintain price stability while supporting economic growth, the ability to anticipate inflationary pressures could become increasingly valuable.
The latest development suggests that the Bank of Ghana is preparing for a future where monetary policy will be driven not only by traditional economic indicators, but also by machine learning, real-time data and advanced analytics.
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