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How Generative AI is transforming banking in the UAE and beyond
Financial institutions are using AI not only to improve internal processes but also to reshape how they interact with customers, manage risk and drive innovation
- PUBLISHED: Thu 25 Sept 2025, 8:15 AM
Artificial Intelligence (AI) is moving rapidly from the realm of research into real-world application, bringing measurable change to industries worldwide. In banking, its impact is already clear. Financial institutions are using AI not only to improve internal processes but also to reshape how they interact with customers, manage risk and drive innovation.
At the centre of this shift is Generative AI (GenAI), a technology that uses advanced models such as Large Language Models (LLMs) and Machine Learning (ML) algorithms, to perform tasks that previously required considerable time and manual effort. From drafting reports and reviewing contracts to verifying documents and detecting fraud, GenAI is becoming essential to how banks operate and compete.
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A broad and growing impact
GenAI is now integrated across multiple banking functions, from retail and corporate services to compliance, risk and credit operations. It plays a growing role in decision-making processes, streamlines regulatory workflows and supports more responsive and tailored customer interactions. Increasingly, it is becoming a critical component of how banks model risk, personalise customer engagement and improve back-office functions.
The financial potential of the technology is substantial. McKinsey & Company estimates GenAI could add between $200 billion and $340 billion in annual value to the global banking sector. IDC forecasts global GenAI spending will reach $202 billion by 2028, reflecting one of the fastest growth rates in technology investment.
The UAE’s leadership in AI deployment
The UAE is positioning itself as a leader in AI-driven finance. Guided by national strategies such as the UAE National AI Strategy 2031 and reinforced by forward-looking regulation, the country has created an environment where AI innovation can thrive. The introduction of DIFC’s Regulation 10, the first legal framework in the MEASA region for the governance of autonomous AI and data processing, is one example of how the UAE is balancing innovation with governance.
The UAE’s strategic policies have been supported by corresponding investment. In 2024, BlackRock, Global Infrastructure Partners, Microsoft and MGX launched a new global AI partnership with the potential to invest $100 billion in data centres and supporting power infrastructure — underscoring the UAE’s ambition to remain at the forefront of technological transformation.
Within the UAE, major banks are already demonstrating the value of GenAI in live environments. Emirates NBD, for example, has embedded AI into a wide range of functions, from improving compliance and accelerating credit decisions to supporting legal and regulatory teams. One notable initiative is the Bank’s deployment of an internal legal tool which provides real-time responses to legal queries.
GenAI also underpins key functions in the bank’s retail operations including customer onboarding, fraud detection and contact centre support. In the business banking segment, it plays a role in reducing friction for SMEs and linking front and back-end operations through a digital middle office. AI also supports the Bank’s sustainability efforts, with a GenAI-powered assistant helping stakeholders navigate general information on Emirate NBD’s Environment, Social and Governance (ESG) strategy and initiatives.
Innovation through partnership
This progress is made possible by a deliberate and disciplined approach to innovation. Emirates NBD has also embraced a collaborative approach to innovation. Its partnership with AlphaSense has enhanced the way its Capital and Wealth Management teams access and analyse market intelligence. Similarly, its collaboration with Silent Eight, a fintech firm leveraging AI, has strengthened the bank’s financial crime compliance capabilities - improving alert resolution and significantly reducing false positives.
As AI becomes more capable, so too does the need for careful oversight. Emirates NBD has developed a responsible AI framework that prioritises ethical use and transparency. The bank employs human oversight in all high-impact decision-making, maintains strict governance over its models, and conducts regular monitoring and audits to ensure its systems are functioning as intended.
This emphasis on responsibility reflects a broader regulatory direction in the UAE, where innovation is encouraged, but not at the expense of customer trust or systemic integrity.
Looking ahead
The role of GenAI in banking is set to expand, not just in terms of efficiency, but in redefining how banks operate. From more personalised services to better risk management and faster product development, the possibilities are considerable.
With its proactive regulation, strong economy and digitally engaged population, the UAE is well positioned to lead in this area. For Emirates NBD and its peers, the integration of GenAI is not a short-term initiative but a long-term commitment to reshaping financial services in a way that is intelligent, reliable and aligned with customer needs.