Governor Pan Gongsheng says the central bank will study how artificial intelligence affects growth, markets and monetary policy before it acts
China’s central bank has added a new item to its watch list: artificial intelligence.
Speaking at the Financial Street Forum in Beijing on October 19, 2026, People’s Bank of China (PBOC) Governor Pan Gongsheng said the bank will keep a close eye on how AI affects the economy, financial markets and monetary policy. The goal, he said, is to make forward-looking policy preparations rather than scramble after the fact.
Pan framed the bank’s approach as cautious and measured. He called for prudent assessments of AI’s influence across three areas: the broader economy, financial markets and the mechanics of monetary policy itself.
On jobs, Pan offered a nuanced read. He said AI has not yet considerably affected overall employment levels. But he added that the technology is already changing the structure of jobs across various sectors.
Pan also stressed that AI’s effects are uneven. They differ by country, by region and by industry, which makes a single, blanket policy response hard to design.
Pan’s remarks did not come out of nowhere. A month earlier, on September 19, 2026, Huang Yiping, a member of the PBOC’s monetary policy committee, raised a sharper concern.
Huang warned that rapid AI adoption could worsen one of China’s long-running structural problems: an economy characterized by strong supply and weak domestic demand.
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The logic is fairly intuitive. AI can make factories, offices and services more productive, which boosts what the economy can supply. But if households are not spending more at the same pace, the result is more output chasing the same pool of demand.
The AI discussion arrived alongside other signals about where the PBOC’s framework is heading. The bank is exploring adjustments to how it conducts monetary policy, including placing more emphasis on overnight reverse repo rates.
According to the research findings, that emphasis is intended to provide liquidity support for non-bank institutions.
The AI monitoring also fits within Beijing’s wider policy agenda. The bank’s stance aligns with national goals of high-quality growth and technological self-reliance, including the government’s “AI+” initiative.
This is not the PBOC’s first encounter with the technology. The bank has shown interest in AI-related finance topics since at least August 2026, including the risks around payments made by AI agents.
AI agents are software programs that can carry out tasks on a user’s behalf, which can include initiating transactions.
That earlier work was narrow and operational. Pan’s October speech widens the lens considerably, moving from specific payment risks to the technology’s effect on the entire economy.