In conjunction with the launch of the 2024 edition of the program to support and enhance the capacity of credit institution managers in WAEMU, the West African Center for Banking Studies and Training (COFEB) conducted an online international Master Class on the subject of “Artificial Intelligence in the Banking and Financial Sector: Opportunities and Challenges for African Banks” on Thursday, March 21, 2024, in collaboration with the École des Hautes Études Commerciales de Paris (HEC Paris).

This webinar was facilitated by Professor Marc Israel, an expert from HEC Paris, former Cloud Director and CTO at Microsoft Sub-Saharan Africa, and founder and CEO of Aetheis Mauritius, a company specialized in AI applications in Africa.

A total of one thousand fifty (1,050) participants representing the BCEAO, partner central banks, credit institutions, microfinance institutions, and economic and financial administrations in WAEMU, took part in this videoconference.

In his opening remarks, COFEB General Manager Patrick Kodjo welcomed the virtual class on behalf of the Authorities of the BCEAO and its Governor. Then, he expressed his gratitude to the participants for their large turnout, which reflected their interest in the activities of the Central Bank as stakeholders of the banking and financial ecosystem, as well as their dedication to further education. Mr. Kodjo added that the Master Class marked the sixth edition organized by COFEB in collaboration with HEC Paris, a key partner of the Center. He expressed his appreciation of the partnership, which had fostered unflagging collaboration between the two institutions for over eleven years. In conclusion, the General Manager of COFEB highlighted that the subject chosen for the Master Class was intended to inspire participants to take some time to connect with ongoing research and contemporary issues in an ever-evolving world, especially those driven by technological developments like artificial intelligence (AI), which can be broadly defined as a set of theories and methodologies focused on creating machines that can simulate human intelligence.

The keynote speaker, Marc Israel, presented his analyses on the principles of artificial intelligence, its relevance to African markets, and its application methods, particularly concerning generative artificial intelligence. He explored also the opportunities presented by AI, as well as the challenges this technology may pose within the WAEMU region. Citing research in the field, Professor Israel noted that, globally, AI could automate more than 18% of tasks and enhance the speed of financial transactions. For instance, ChatGPT, the most commonly known AI application, has been shown to reduce the time required to complete tasks by 40% while improving their quality by 18%, as reported in a study conducted by Massachusetts Institute of Technology (MIT) on July 14, 2023. However, the speaker emphasized that the effectiveness of AI depends on how it is utilized. AI offers suggestions and refines probabilities, which must be directed by human intelligence towards the desired objectives.

Discussions with participants centered on the practical application of AI in banks to improve service personalization and tailor offerings to clients. They also focused on the regulatory considerations that need to be taken into account if AI is to be utilized, as well as the skills that management teams need to develop to remain competitive and innovative in an ever-changing environment. Furthermore, the challenges associated with the use of AI technology at the BCEAO and, more broadly, in central banks, were also explored.

At the conclusion of the conference, COFEB and HEC Paris presented the catalogue of trainings for the year 2024. It includes the Executive Certificate in Strategic Banking Management, Level 1 (CEMSTRAT 1), designed for operational and technical directors, and the Executive Certificate in Strategic Banking Management, Level 2 (CEMSTRAT 2), aimed at general managers and assistant general managers of credit institutions, microfinance institutions, and economic and financial administrations within the WAEMU region. Additionally, a two-day workshop on public speaking skills will also be offered.

In his closing message, the General Manager of COFEB, Patrick Kodjo, speaking on behalf of the Governor, expressed gratitude to all participants of the Master Class. He noted that the Bank’s Authorities had once again agreed to support the 2024 edition by providing a grant. He also mentioned that, in light of evolving technologies, the program encouraged leaders of financial institutions in the Union to refresh their knowledge on emerging topics. Finally, he took the opportunity to encourage leaders of banking and financial organizations to register for these courses and ensure their colleagues are also enrolled.