The Central Bank of the United Arab Emirates (CBUAE) has issued a comprehensive guidance note outlining principles for consumer protection and the responsible adoption of artificial intelligence (AI) and machine learning (ML) by licensed financial institutions operating in the UAE.
The move reflects the regulator’s proactive supervisory approach as the financial sector undergoes rapid digital transformation.
By introducing a structured framework, the CBUAE aims to ensure that innovation in smart financial services is deployed safely, ethically, and in a manner that safeguards consumer rights while preserving financial stability.
The framework establishes clear reference standards for the responsible deployment of AI and ML technologies, including:
Governance and accountability: Clear roles, oversight structures, and board-level responsibility for AI systems.
Fairness and non-discrimination: Safeguards to prevent algorithmic bias and ensure equitable treatment of customers.
Transparency and explainability: Clear communication of AI-driven decisions affecting consumers.
Effective human oversight: Mechanisms to maintain meaningful human intervention in automated processes.
Data governance and privacy: Robust standards for data management, protection, and regulatory compliance.
HE Khaled Mohamed Balama Governor CBUAE
“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 emphasizes the importance of human oversight and data protection requirements.”
The guidance aligns with the UAE’s national strategy for artificial intelligence and applies to all licensed financial institutions within the supervisory ecosystem, thereby supporting the resilience and sustainability of the financial sector.
