UAE Central Bank Issues AI Guidance for Financial Institutions
The regulator has outlined how licensed banks and insurers should adopt AI while protecting consumers and safeguarding data.
The Central Bank of the United Arab Emirates has issued a guidance note outlining how licensed banks, insurers and other financial institutions should adopt and use artificial intelligence and machine learning across their operations.
The document, titled Guidance Note: Consumer Protection and Responsible Adoption and Use of Artificial Intelligence, sets formal expectations around governance, fairness, transparency and data protection. It applies to licensed entities operating under the central bank’s supervision and is published on the regulator’s rulebook portal.
Under the framework, financial institutions are expected to ensure that artificial intelligence and machine learning systems are built on high-quality data and incorporate privacy and security safeguards from the outset. Firms must also demonstrate that AI-driven processes operate transparently and do not compromise consumer rights.
The measures reflect the central bank’s stated objective of balancing technological innovation with consumer protection as financial institutions increasingly integrate automation and AI-powered tools into lending, insurance underwriting, customer service and risk assessment functions.
