CBUAE issues AI consumer protection guidance for financial sector
AI governance note applies to all licensed financial institutions in UAE
#UAE #governance – Central Bank of the United Arab Emirates (CBUAE) has issued a guidance note on consumer protection and responsible adoption and use of artificial intelligence and machine learning by licensed financial institutions operating in the UAE. The guidance establishes core principles serving as reference for optimal use of such technologies, including governance and accountability, fairness and non-discrimination, transparency and explainability, effective human oversight, and requirements relating to data management and privacy.
SO WHAT? – The guidance is in line with CBUAE’s efforts to fostering trust in financial innovation by striking balance between enabling technological advancement, ensuring consumer protection and maintaining financial stability. By establishing framework that applies to all licensed financial institutions within the Emirates, the central bank addresses the challenge that rapid AI deployment in financial services without clear governance principles could undermine consumer trust and financial stability despite technological benefits.
Here are some key points regarding the Guidance Note:
Central Bank of the United Arab Emirates (CBUAE) has issued a guidance note on consumer protection and responsible adoption and use of AI and machine learning by licensed financial institutions operating in the UAE.
The guidance note aims to establish clear framework for responsible use of artificial intelligence and machine learning in the financial sector, enhancing consumer protection, reinforcing governance and transparency principles, and emphasising importance of human oversight and data protection requirements.
Core principles include governance and accountability ensuring clear responsibility structures for AI deployment, fairness and non-discrimination preventing algorithmic bias in financial services, transparency and explainability enabling consumers to understand AI-driven decisions, and effective human oversight maintaining human judgment in critical processes.
The framework includes requirements relating to data management and privacy, ensuring that AI and machine learning systems deployed by financial institutions comply with data protection standards and maintain customer information security across automated processes.
The note applies to all licensed financial institutions within CBUAE’s supervisory ecosystem, creating standardised expectations for AI deployment across banking, insurance and other regulated financial services operating in the UAE.
The guidance reflects CBUAE’s proactive supervisory approach and commitment to keeping pace with rapid developments in digital transformation and smart financial services, establishing forward-looking framework rather than reactive regulation following incidents.
The initiative also aligns with the UAE’s National Strategy for Artificial Intelligence 2031, supporting resilience and sustainability of the financial sector through responsible technology adoption whilst maintaining alignment with broader national AI governance objectives.
[Written and edited with the assistance of AI]