o:39933 AI in the Central Banks of the Western Balkans: Adoption, Challenges, and Prospects en Abstract The changes in technological development driven by artificial intelligence (AI) are substantial and rapid, and central banks are not exempt. Implementing AI in the central banks of Western Balkan countries offers opportunities but also presents challenges and increases risks. That is why our aim is to analyze current advancements in the region’s central banks regarding AI implementation, as well as possibilities for further growth. This review paper relies on relevant publications, including working papers, research outputs, and official announcements that reference AI and related concepts. The overall conclusion is that, while research and ideas are not necessarily lacking, implementation lags behind. It is hindered by numerous obstacles, particularly data quality and availability, followed by privacy issues, lack of human capital, and the difficulty of aligning the enduring mandates of central banks with rapidly evolving AI technologies. Nevertheless, the region’s central banks have already begun the journey towards integrating AI, even if progress remains gradual. Keywords: central banks, AI, Western Balkan 1552100 978-625-93481-0-0 2026-10-05T10:28:17.390Z 44 no 46 Slavica Manić Univerzitet u Beogradu Ekonomski fakultet 0000-0003-2730-3215 Iva Glišić person application/pdf 272887 https://phaidrabg.bg.ac.rs/o:39933 no yes 18 70 92000004 11A03 Proceedings of 26th SCF International Conference on “Economic, Environmental, Social, and Educational Implications of Artificial Intelligence”, Istanbul, december 2025 42 55 Yılmaz Bayar Bandirma 2025