China's central bank will pursue a three-part approach to artificial intelligence (AI): financing the industry's growth, cautiously embedding AI into financial operations, and rigorously tracking how the technology reshapes the economy and markets, according to Pan Gongsheng, governor of the People's Bank of China (PBOC).

Speaking at the opening of the 2026 Financial Street Forum in Beijing on Monday, Pan identified three features of the global AI boom that warrant central bank attention: a possible mismatch in timing between AI's demand and supply, uneven impacts across countries and sectors, and the technology's role in driving highly correlated and volatile global equity markets.

On the demand-supply mismatch, Pan said AI could alter micro-level efficiency, spur investment and push up inflation in the short run. At the same time, it may lift overall productivity and lower inflation over the long term. On distribution, he said while AI has not yet caused a clear shock to total employment, it is already changing the structure of jobs. And on financial stability, he said the AI investment wave has become one of the main forces behind global stock market gains, with markets showing elevated correlation and volatility.

Pan said the PBOC will focus on core technological innovation and the government's "AI+" initiative, raising both the intensity and diversification of financial support for technological innovation. He described AI as "already in use" across Chinese finance, detecting suspicious transactions, improving risk-control efficiency, and advancing financial inclusion. Pan also said the PBOC will "cautiously assess the impact of AI technology evolution on the macroeconomy, financial markets and monetary policy," and make policy considerations and preparations in advance.