Experts highlight the UAE’s swift ascension as a global frontrunner in Generative AI (GenAI) adoption, attributing it to forward-thinking regulations, a robust economy, and a tech-literate population.
Banking leaders and experts emphasize that this shift is driven by a strategic vision from the government, which sees AI technologies as key to economic diversification, increasing productivity, and enhancing quality of life.
“The UAE is organizing international conferences and competitions to foster collaboration among startups, researchers, and industry leaders. This proactive strategy cultivates local talent while attracting global stakeholders to the UAE’s dynamic tech environment. Consequently, the UAE is not only utilizing GenAI for economic advancement but also establishing benchmarks for ethical AI practices and sustainability, serving as a model for other nations aiming to leverage technological transformation,” stated industry experts and banking executives to BTR prior to Gitex Global.
Key initiatives like the UAE’s Artificial Intelligence Strategy 2031 aim to integrate AI into various sectors, including healthcare, education, and finance. The creation of the UAE’s AI Council and significant investments in tech infrastructure have fostered an ecosystem that encourages innovation and attracts global expertise. Partnerships with top tech firms and academic institutions further enhance the nation’s GenAI capabilities.
The UAE aims to become a global AI hub, potentially contributing around $320 billion to the Middle East’s GDP by 2030, with the UAE accounting for nearly 14% of its economy, as per PricewaterhouseCoopers estimates.
McKinsey projects that generative AI could annually add between $21 billion and $35 billion to Gulf economies, equating to up to 2.8% of the current non-oil GDP, with banking and finance as key beneficiaries.
The global consultancy’s latest report estimates that AI can contribute over $1 trillion annually to the global banking sector through enhanced efficiencies, cost reductions, and innovation.
The Gulf market, valued at approximately $5.4 billion in 2024, is expected to exceed $22 billion by 2033, according to Imarc Group.
AI Revolutionizing Banking
Analysts and financial experts note that AI’s potential in banking is still unfolding, with the industry’s future promising even more sophisticated applications. They observe that UAE digital banks demonstrate that AI automation is not just a future prospect but a current growth catalyst.
“Institutions mastering AI will set the regional pace and establish the global benchmark for modern, intelligent finance.”
Analysts highlight the UAE’s ambition to achieve a 90% cashless economy by 2026, accelerating AI adoption. With 71% of UAE financial institutions having implemented or enhanced AI capabilities in the past year, the country ranks among the world’s top adopters. This growth is powered by strong governmental initiatives, supportive regulations, and significant public and private sector investments.
Giovanni Everduin, Chief Strategy and Innovation Officer, Commercial Bank International (CBI).
As the UAE continues to lead digital transformation in the financial sector, AI is essential in shaping banking’s future. The UAE banking sector is actively adopting AI to improve efficiency, customer experience, and security. This aligns with the government’s push for digitalization and innovation in the financial sector, including initiatives like the UAE’s AI Charter and Dubai’s Artificial Intelligence Strategy 2031. AI is also integrated into the broader financial landscape, including fintech startups and blockchain applications.
With high openness to AI in the UAE, banks warmly embrace AI solutions such as robo-advisors, conversational AI, fraud detection models, algorithmic trading, and AI-powered customer service automation. AI platforms may also suggest customized investment portfolios, personalized savings plans, or suitable loan options based on individual financial goals and risk profiles.
Smarter Decision-making
Giovanni Everduin, Chief Strategy and Innovation Officer at Commercial Bank International (CBI), noted that AI’s potential spans almost every bank aspect, from front-end interactions to back-end operations, ultimately enhancing customer experience and enabling a more seamless banking experience.
“AI empowers smarter decision-making, enhances risk controls, and drives greater bank-wide efficiency. Our ongoing exploration focuses on responsibly harnessing AI to align with our strategic goals and values,” Everduin told BTR.
Established in 1991 and headquartered in Dubai, CBI is a leading UAE bank dedicated to empowering businesses and individuals through innovative, personalized, and growth-focused banking solutions. It is listed on the Abu Dhabi Securities Exchange and provides bespoke banking services to help clients achieve their ambitions.
“At CBI, we actively explore AI and synthetic data use cases to enhance customer experience, improve operational processes, and bolster risk management. Our approach balances innovation, delivering meaningful value, and maintaining full compliance,” Everduin stated.
He emphasized that GenAI integration is not a short-term initiative but a long-term commitment to transforming financial services. “Indeed, GenAI represents a fraction of AI and synthetic data capabilities.”
“As models advance and use cases expand, this technology is poised to reshape not only financial services but the world. A particularly intriguing area for finance is agentic AI, especially within the UAE’s new regulatory framework for dirham-backed stablecoins. The synergy of programmable money and semi-autonomous AI agents is ideal for digital channels and e-commerce applications,” he said.
UAE — Leader in AI-driven Services
Ghady Rayess, Co-founder and Managing Director at Foo, highlighted the rapid acceleration of AI adoption in the UAE’s banking sector, reshaping customer interactions with financial services.
From personalized financial advice to smarter fraud detection and seamless digital onboarding, AI enhances efficiency and customer experience.
Ghady Rayess, Co-founder and Managing Director at Foo.
“For customers, this translates to faster, more secure, and intuitive banking. The UAE’s progressive regulatory environment also fosters innovation, positioning the region as a leader in AI-driven financial services globally,” Rayess told BTR.
Foo, a UAE-based, award-winning B2B SaaS company, drives digital transformation in the fintech space, collaborating with banks, fintech companies, and key retailers across the Mena region, Africa, Europe, and the USA, including Mastercard, Visa, Benefit, Zain Group, PwC, and MAF. It provides innovative fintech solutions, developed entirely in-house, to optimize clients’ digital capabilities across diverse industries, delivering unparalleled user experiences.
Rayess noted that UAE banks and financial institutions have significantly invested in GenAI to automate banking services, improve efficiency, and ensure top-notch customer services.
“Although figures vary across institutions, the UAE banking sector has significantly increased GenAI investments over the past 18-24 months. Banks are allocating tens of millions annually to AI initiatives, from automating routine processes like KYC and compliance checks to enhancing call centers with AI-driven chatbots and leveraging predictive analytics for risk management.
“The ROI is evident: improved efficiency, reduced operational costs, and stronger customer engagement. In the next three to five years, I expect these investments to multiply as GenAI evolves from pilot projects to full-scale adoption across the sector,” he said.
STRATEGIC FOCUS
George Harrak, Chief Executive Officer of Jeel — the digital innovation arm of Riyad Bank, echoed similar sentiments, stating GenAI adoption remains a strategic focus.
“Yes, we actively use GenAI to enhance daily operations. From copilot to AI tools supporting software development, GenAI is embedded in our workflows. We prioritize AI for optimizing processes and automating critical business functions across financial services,” Harrak said.
As Riyad Bank’s digital innovation arm, Jeel pioneers technological advancements, delivering cutting-edge solutions shaping technology’s future. With a focus on enhancing digital customer experiences, Jeel leads cloud-based innovation in the financial industry.
George Harrak, Chief Executive Officer of Jeel — Riyad Bank’s digital innovation arm.
Regarding GenAI budget allocation, he stated: “We invest significantly in GenAI, both internally and through our Jeel sandbox initiative. These efforts support AI-powered fintech propositions and bank innovation. GenAI adoption remains a strategic focus as we scale our capabilities into 2026 and beyond.”
He emphasized that GenAI integration is not short-term but a long-term commitment to reshaping financial services: “GenAI adoption is already underway, not a future consideration but a present reality. Its benefits are tangible. However, responsible implementation with strong governance is crucial. At Jeel, we’re committed to making GenAI a core part of our long-term strategy, ensuring compliant and well-regulated use.”
GenAI — A Reality
Mihir Modi, Vice-President Strategy at zypl.ai — a startup specializing in generative AI for lending solutions, stated that UAE banks have moved beyond ‘pilot theatre.’
“AI is no longer limited to trials; it’s deployed across risk, customer service, and operations. Clear regulations, a growing talent pool, and leadership from the top have created an AI-scalable ecosystem,” Modi told BTR.
For customers, the benefits are already evident:
Speed. Onboarding, document checks, and daily services become quick, always-on experiences powered by automation and generative AI.
Safety. Smarter anomaly detection and enhanced identity controls prevent more fraud while reducing friction.
Personalization. Credit limits, repayment plans, and collections are increasingly tailored to individual behavior rather than broad averages.
Mihir Modi, Vice-President Strategy at zypl.ai.
“At zypl, the next competitive edge lies not in amassing more data but in making data more resilient. Our patented zGAN technology generates synthetic ‘black swan’ scenarios, enabling banks to stress-test credit, fraud, and collection models against rare but impactful shocks.
“Combined with the Lucid platform, institutions can design, govern, and deploy AI models end-to-end with confidence. The practical impact is fewer false declines, faster approvals for reliable borrowers, and broader access to finance,” says Modi.
Challenges Ahead
Rayess from Foo sees challenges ahead for GenAI in banking and insurance but believes GenAI has immense potential.
“Yes, the potential is enormous, but institutions must navigate challenges carefully. Major concerns include data privacy, regulatory compliance, and ethical AI-generated outputs.”
He noted that GenAI models require vast data, and safeguarding sensitive financial and personal information is non-negotiable. Another challenge is ensuring transparency, as customers and regulators need confidence that AI-driven decisions are explainable and unbiased.
“Finally, adoption requires reskilling teams and integrating new technologies into legacy systems, which can be complex and costly,” he said.
In the UAE, zypl.ai’s Modi said the GenAI question has shifted from if to how well. Banks and insurers are deploying real systems to speed up onboarding, maintain constant service, and tailor products to individual needs.
“The risks are practical. Trust relies on explainable and accountable decisions. Reliability means outputs align with policies and records, not just confident text. Security must advance with adversaries through stronger liveness, device, and behavioral checks.”
Insurance faces sharper challenges. Data can be thin or skewed, especially in newer lines like cyber or SME health, which can distort pricing and claims, according to Modi.
“Models often underweight rare, high-severity events—the very moments defining insurance performance. Claims remain document-heavy, where inconsistent inputs can mislead GenAI. Regulators expect fairness, explainability, and audit trails in underwriting and claims.”
zypl.ai aids institutions in meeting standards without hindering innovation. “Our patented zGAN creates fully anonymized, privacy-preserving synthetic data—including rare ‘black swan’ scenarios—allowing teams to stress-test pricing, underwriting, fraud, and claims models before deployment.
“Since the data is synthetic and fully anonymized, it doesn’t violate privacy. We also simulate distribution shifts to detect drift early, reducing false declines and over-pays while keeping model rationales aligned with policy,” he said.
AI empowers smarter decision-making, enhances risk controls, and drives efficiency bank-wide. As we explore possibilities, our focus remains on responsibly harnessing AI in alignment with strategic goals and values.”
Economic Impact
> $320 billion estimated AI contribution to Middle East GDP by 2030 (PwC), with UAE accounting for 14%
> $21–$35 billion per annum potential GenAI impact on Gulf economies (McKinsey), especially in banking and finance
> $1 trillion global banking industry gains from AI through efficiency, cost reduction, and innovation
> $5.4 billion – $22 billion projected Gulf AI market growth from 2024 to 2033, according to Imarc Group
