UAE Central Bank unveils new AI guidelines to protect banking customers.
Dubai: The UAE Central Bank has released new guidance to safeguard consumers and promote responsible use of artificial intelligence across the financial sector, reflecting a regulatory response as banks accelerate their digital transformation.
The framework applies to all licensed financial institutions, setting out rules for the use of artificial intelligence and machine learning while protecting consumer rights and maintaining financial stability.
Authorities described the move as a proactive supervisory measure aimed at keeping pace with rapid developments in smart financial services and emerging digital risks.
Clear Rules on Governance and Transparency
The guidance establishes key principles to enhance oversight and accountability in the use of advanced technologies.
It includes requirements on governance structures, fairness and non-discrimination, transparency and explainability of AI decisions, and robust human oversight of automated systems.
Data management and privacy safeguards are also central to the framework, addressing growing concerns over the handling of sensitive customer information.
Balancing Innovation with Protection
The Central Bank said the initiative seeks to balance innovation with strong consumer safeguards as institutions adopt advanced technologies.
“The guidance aims to establish a clear framework for the responsible use of artificial intelligence and machine learning in the financial sector, enhancing consumer protection, reinforcing governance and transparency, and emphasising the importance of human oversight and data protection,” said Khaled Mohamed Balama, Governor of the Central Bank of the UAE.
Aligning with National AI Strategy
The framework aligns with the UAE’s broader artificial intelligence strategy and supports efforts to enhance resilience across the financial system while maintaining public confidence in digital banking services.
Officials said the guidance will promote sustainable innovation, ensuring institutions adopt technologies responsibly while upholding strong consumer protection and operational integrity.
