The Bank of Tanzania (BoT) is turning to artificial intelligence (AI) and data innovation to strengthen financial sector supervision, improve risk detection and make financial services more efficient as technology reshapes banking operations.
The move is expected to change how the central bank and commercial banks analyse financial information, monitor emerging risks and make decisions, while raising the importance of data protection and accountability.
BoT Governor Emmanuel Tutuba said AI offered opportunities to improve the performance of financial institutions, particularly in an environment where financial transactions and customer demands were becoming increasingly complex.
Speaking on October 28, 2026, at the opening of a conference organised by the Bank of Tanzania Academy in Mwanza, Mr Tutuba said financial institutions needed to move beyond conventional digital transformation and embrace technologies capable of analysing information and predicting emerging trends.
He said institutions had spent years investing in computer systems, mobile and internet banking and digital data storage, but AI represented a further step by enabling systems to process information and support decision-making.
“AI has a significant role in transforming how banks and central banks perform their responsibilities,” he said.
For the financial sector, the technology could improve the identification of potential risks, strengthen institutional decision-making and support the delivery of safer services that respond to customers' needs.
Mr Tutuba said BoT had already started establishing the institutional framework for adopting AI and data innovation through the creation of an AI and Data Innovation Hub.
The central bank had also approved policies and strategies to guide the use of the technology, with safeguards focusing on data privacy, accountability and human oversight.
The measures are important as financial institutions increasingly rely on automated systems to process information and support decisions that can affect customers and the wider economy.
Mr Tutuba said BoT had also signed cooperation agreements with five higher learning and research institutions in the country to accelerate research, testing and innovation in AI applications.
The partnerships will focus on areas including economic research, financial sector supervision, currency management and payment systems.
The initiative signals the central bank's intention to build local research capacity and develop technological solutions that respond to Tanzania's financial sector needs.
However, wider adoption of AI will also require institutions to address challenges relating to the security of financial information, accountability for automated decisions and the need for human supervision.
These issues were among the subjects discussed at the Mwanza conference, which brought together academics, technology experts, financial sector practitioners and policymakers.
Held under the theme, “Beyond Digital Transformation: How Artificial Intelligence is Transforming the Performance of Banks and Central Banks,” the conference examined opportunities and challenges associated with the use of AI in financial institutions.
The discussions focused on how emerging technologies could improve operational efficiency, strengthen financial sector oversight and support the development of more secure and responsive banking services.