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More than 4 out of 10 UAE banks using AI to reduce operational costs, reveals study
Globally, only two per cent of financial institutions reported not using AI, with the overwhelming majority of banks seeing modernisation as a key priority
- PUBLISHED: Wed 11 Feb 2026, 11:29 AM
Banks across the UAE are gradually incorporating artificial intelligence into daily operations, with more than 53 per cent adopting AI to improve accuracy and reduce errors, according to Finastra.
The financial services provider Finastra reported that 44 per cent of financial institutions in the UAE are using AI to lower operational costs as they move to an approach cantered on efficiency, reliability, and execution.
Modernisation a top priority
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In its Finastra Financial Services State of the Nation 2026 report, released on Tuesday, almost nine out of ten (87 per cent) of institutions globally plan to invest in modernisation over the next year, with AI at the forefront. This includes AI for both operations within the institutions and also for improved customer experience.
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Globally, only two per cent of financial institutions reported not using AI, with the overwhelming majority of banks seeing modernisation as a key priority for their strategic agendas.
The survey analysed more than 1,500 managers across 11 global markets, and of those respondents, 87 per cent signalled strong personal optimism, while 86 per cent said they were optimistic about the outlook for their institution after adopting AI.
Based in the United Kingdom, Finastra provides financial services software in corporate banking, retail banking, investment management, etc. and works with 40 of the world’s top 50 banks.
Security investments
The UAE stands out in the report as one of the most proactive markets with regard to security investments. Nine out of ten institutions are planning to increase security spending over the next 12 months, the report said.
Globally, financial institutions expect security investment to increase by an average of 40 per cent in 2026, driven by escalating cyber threats, deeper reliance on digital platforms, and tighter regulatory scrutiny.
The UAE’s banking sector has invested heavily in data platforms, advanced analytics and AI solutions to personalise services, strengthen fraud detection, and enhance the overall customer experience, according to the Emirates News Agency (Wam). Some banks in the UAE are also utilising AI for other reasons altogether, like inclusivity and accessibility.
“In line with Dubai and the UAE’s focus in becoming global trailblazers and dynamic hubs for technology and Artificial Intelligence (AI), technology and innovation remained central to our progress throughout 2025,” Hesham Abdulla Qassim Al Qassim, Vice Chairman and Managing Director of Emirates NBD, said in the bank’s annual report 2025.
Hind Aldah is a business reporter based in Sharjah. In her spare time, you will find her playing classical guitar, painting amateur oil paintings, or crocheting the same old scarf that leads nowhere.
