The Central Bank of the United Arab Emirates has issued a guidance note on consumer protection and the responsible adoption of artificial intelligence and machine learning by licensed financial institutions operating in the United Arab Emirates. The move therefore reinforces the regulator’s supervisory oversight amid accelerating digital transformation.
The initiative reflects a proactive approach to emerging technologies in financial services. Moreover, it underscores the commitment to aligning regulatory standards with rapid innovation in smart financial solutions.
Framework for Responsible AI Use
The guidance establishes a structured framework for the safe and responsible deployment of artificial intelligence and machine learning. Consequently, it aims to safeguard consumer rights while strengthening governance and transparency across institutions.
The note outlines core principles to guide optimal technology use. These include governance and accountability, fairness and non-discrimination, transparency and explainability, and effective human oversight. Additionally, it sets requirements relating to data management and privacy, thereby promoting sustainable and equitable practices.
By formalising these principles, the regulator seeks to provide clarity for licensed entities integrating advanced technologies into their operations. As a result, institutions must align internal processes with enhanced risk management and compliance expectations.
Balancing Innovation and Stability
Through the guidance, the central bank emphasises the importance of balancing technological advancement with consumer protection and financial stability. Furthermore, the note aligns with the UAE’s national artificial intelligence strategy and applies to all licensed financial institutions within the supervisory framework.
Therefore, the measure supports resilience and long-term sustainability across the financial sector. It also aims to foster trust in financial innovation by ensuring transparent and accountable implementation of emerging technologies.
Commenting on the initiative, Khaled Mohamed Balama, Governor of the Central Bank of the UAE, said, “The guidance note aims to establish a clear framework for the responsible use of artificial intelligence and machine learning in the financial sector, in a way that enhances consumer protection, reinforces governance and transparency principles, and emphasises the importance of human oversight and data protection requirements.”
