February 2026 • Responsible AI, UAE Regulations

The use of AI in financial services is accelerating, but so is regulatory scrutiny. The Central Bank's guidance gives licensed institutions a clear roadmap to follow. Here’s how banks and insurers should approach responsible AI use.

1. Documented Governance Frameworks

Institutions must maintain written governance policies covering AI strategy, risk appetite, approval processes, model validation, deployment, monitoring, and lifecycle management. Accountability lies with senior management and the Board.

2. Inventory & Reporting

Financial institutions should keep comprehensive inventories of all AI systems including their purpose, data sources, and model logic and report periodically to senior leadership on performance and risks.

3. Bias & Fairness Controls

Institutions should actively test AI models for unintended discrimination, document decisions made by the model, and update models where risks are identified. This protects both consumers and the institution from reputational and regulatory fallout.

4. Customer Rights & Transparency

Customers must receive clear notice when decisions are AI-informed, and be given options such as human review or explanations especially when decisions affect eligibility for products like loans or credit.

5. Outsourcing & Third Party AI

Banks often source AI solutions from external vendors. Under the guidance, institutions remain fully responsible for the governance and outcomes of these systems so due diligence, contractual safeguards and risk assessments are essential.