February 2026 • AI Governance, Financial Services

Artificial intelligence is reshaping financial services globally and the UAE is moving fast to govern it wisely. The Central Bank of the UAE has issued a new Guidance Note on the responsible adoption and use of artificial intelligence (AI) and machine learning (ML) for licensed financial institutions. This marks a major shift from experimental use toward structured, consumer centric AI governance in banking, insurance and payments.

Why This Matters

As banks scale AI for credit scoring, fraud detection, chatbots and risk models, there’s a risk that automated decisions could unintentionally harm consumers for example, through unfair treatment, opaque logic or biased outcomes. The new guidance helps prevent these risks while still allowing innovation to flourish.

Key Pillars of the Guidance

1. Strong Governance & Accountability

Financial institutions must set up documented governance frameworks tailored to the scale and complexity of their AI deployments — with clear roles and responsibilities from the Board to operational teams.

2. Fairness & Non-Discrimination

AI systems should not create biased outcomes. Data and models must be tested to prevent discriminatory effects, especially in sensitive areas like lending decisions and pricing.

3. Transparency & Explainability

Customers must be informed when AI influences decisions that affect them and institutions should explain how these decisions were made in understandable terms.

4. Human Oversight

AI cannot operate without human supervision. People must be able to intervene, review, and correct automated outcomes especially where decisions materially impact consumers.

5. Data Protection & Privacy

AI systems must meet high standards for data governance, ensuring consumer data is handled securely and in compliance with applicable privacy laws.

The Innovation–Protection Balance

The goal isn’t to slow innovation it's to enable sustainable, trustworthy AI that boosts customer confidence and supports financial stability. That's why the guidance sits alongside the UAE's broader national AI strategy, aiming to promote digital transformation while safeguarding consumers.