DIFC AI adoption jumps to 52% of financial firms
Generative AI usage triples among Dubai financial services firms
#UnitedArabEmirates #sentiment – AI adoption among Dubai International Financial Centre (DIFC) authorised firms has risen to 52 percent in 2025 from 33 percent in 2024, according to an annual survey by Dubai Financial Services Authority (DFSA). Generative AI adoption saw the largest increase, rising 166 percent over 12 months, followed by narrow AI with 99 percent growth, whilst deep learning and machine learning usage both climbed more than 60 percent. The survey of 661 authorised firms, representing an 88 percent participation rate, found 60 percent expect to increase AI use over the next 12 months and 75 percent over three years.
SO WHAT? – The near-tripling of generative AI adoption within 12 months reflects the technology’s rapid integration into financial services operations, as more AI solutions are made available targeted at this sector. The DFSA survey also highlights that governance frameworks appear to be developing more slowly than deployment pace. The study found that 21 percent of firms lack clear accountability or oversight mechanisms despite using AI in critical business operations. The survey reveals a potential gap between technology adoption and risk management maturity.
Here are some key points about the new report:
Dubai Financial Services Authority (DFSA). conducted its annual AI survey in June 2025 with an 88 percent participation from firms in Dubai International Financial Centre (DIFC). The study found that AI adoption among the 661 firms surveyed increased to 52 percent, from 33 percent in 2024.
The number of firms actively using AI rose to 345 in 2025 from 177 in 2024, with 60 percent expecting to increase AI use over the next 12 months and 75 percent planning increases over three years.
Generative AI adoption saw the largest increase at 166 percent growth over 12 months. 48 percent of those surveyed now use Generative AI, compared with just 18 percent in 2024.
Adoption of narrow AI grew 99 percent year-on-year, the second largest increase in the survey, whilst deep learning and machine learning usage both increased more than 60 percent year-on-year.
Whilst 60 percent of firms have some form of governance structure for AI, 21 percent still lack clear accountability or oversight mechanisms, even in cases where AI use is critical to business operations.
The vast majority of AI use cases, representing 79 percent, remain focused on internal operations including human resources, legal, finance, audit, compliance and risk management, whilst only 109 firms representing 21 percent deploy AI in external-facing applications.
Most firms remain at relatively early stages of AI deployment, focusing on proof-of-concept initiatives or pilot programmes rather than full-scale implementation, though many are moving from proofs of concept to live pilots.
Firms called for greater regulatory clarity and guidance on AI governance, ethical use and supervisory expectations, with harmonisation of regulatory expectations across the UAE financial sector also requested by participants.
DIFC is a purpose-built financial free zone in Dubai with the Dubai Financial Services Authority serving as independent regulator for asset management, banking, securities, collective investment funds, insurance and Islamic finance services.
ZOOM OUT – Dubai ranks among the world’s top five cities for AI adoption and top four FinTech hubs, underpinned by the UAE AI Strategy 2031, which promotes AI integration across governance, finance, and creative industries. The Dubai AI Campus at DIFC, the largest dedicated AI cluster in the MENA region, currently hosts over 180 AI companies and 315 entities registered under the Dubai AI Licence, with plans to grow beyond 100,000 square feet and attract $300 million in investments by 2028. DIFC is also the organiser of Dubai AI Festival, which will take place during Dubai AI Week from 7th and 8th April at Dubai World Trade Centre. The 2026 festival is expected to attract over 20,000 attendees, 500+ investors, 200+ speakers, 200+ exhibitors from over 120 countries.
[Written and edited with the assistance of AI]
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This is a super insightful piece, especially on the speed of generative AI. I'm wondering what happens if risk management maturity lags behind the deployment pace even more?