National Bank of Georgia to develop AI regulations aligned with EU standards

The National Bank of Georgia on Wednesday said it would develop regulations for artificial intelligence in line with the European Union standards in order to bolster the stability of financial systems and enhance risk management.

The Bank is planning to create its own AI regulations within the financial sector, aligning with the EU’s AI Act, to safely and effectively integrate these technologies into the regulatory framework”, the body said.

The initiative was outlined in the recently released national fintech strategy, developed in collaboration with the World Bank. According to the strategy document, the NBG is already leveraging AI technologies to meet its regulatory and supervisory policy objectives effectively.

• National Bank of Georgia unveils innovative fintech strategy to foster ecosystem growth

Key components of the strategy focus on reducing market entry barriers for emerging players and modernising the financial infrastructure. Planned projects include initiatives like open banking and open finance, a regulatory sandbox, central bank digital currency, and implementation of an instant payments system.

On the international front, the strategy seeks to position Georgia as a regional fintech hub for countries along the Middle Corridor, a logistics route connecting Central Asia and China to Europe via the South Caucasus through Georgia.

By fostering regional cooperation, the National Bank is working to “inspire and support” neighbouring nations, while also developing an international regulatory laboratory to promote regulatory harmonisation and attract foreign fintech companies and talent to Georgia, the NBG said.