The Central Bank of the UAE has published guidance on responsible AI for licensed financial institutions amid rapid growth in generative AI use across the sector. The guidance sets expectations for governance, consumer protection and risk management as LFIs scale AI-powered services.
Pillars of Responsible AI Governance
Frameworks, Risk, and Transparency
CBUAE asks LFIs to document an AI governance framework that maps roles, policies and escalation paths. AI risks should be integrated into existing risk management, compliance and model governance processes rather than treated as separate. The guidance also stresses transparent disclosures: customers should receive clear, accessible information when AI influences decisions that affect them.
Consumer Fairness and Human Oversight
Avoiding Bias and Maintaining Accountability
The guidance emphasises testing AI systems to identify bias and discriminatory outcomes, with periodic stress-testing and ongoing monitoring. LFIs remain fully accountable for AI-driven outcomes including those produced by third-party vendors. For material decisions, regulators expect defined human oversight levels, from human-in-the-loop review for final decisions to human-on-the-loop monitoring for model performance and drift.
What This Means for UAE Financial Institutions
Adapting to New Regulatory Expectations
Immediate steps for LFIs include cataloguing AI use cases, running a gap analysis against the guidance, and formalising governance and reporting lines. Institutions should strengthen third-party due diligence, update contracts to reflect audit and remediation rights, run bias and scenario testing, and publish clear consumer disclosures where AI affects outcomes. Training for risk, compliance and product teams is necessary to operationalise controls.
Overall, the CBUAE guidance positions the UAE as a regional benchmark for AI in finance, aligning with global trends toward accountable, transparent and risk-aware AI adoption in regulated financial services.
