The Central Bank of the United Arab Emirates has released a set of guidelines aimed at consumer protection and the responsible application of artificial intelligence and machine learning technologies by licensed financial institutions operating in the country. This initiative reflects its proactive regulatory approach and adaptation to the rapid advancements in digital transformation and smart financial services.
The purpose of these guidelines is to establish a clear framework for financial institutions, guiding them to implement these technologies safely and responsibly, safeguarding consumer rights, enhancing governance and transparency principles, and supporting fair and sustainable financial practices.
The guidelines outline several core principles that serve as a reference for the optimal utilization of these technologies. These include governance and accountability, fairness and bias reduction, transparency and avoidance of ambiguity, effective human oversight, as well as data protection and privacy requirements.
The memorandum also addresses consumer disclosure provisions, ensuring that information is provided clearly in both Arabic and English while offering suitable options for objection or withdrawal in high-impact cases arising from automated decisions.
Through these guidelines, the central bank reaffirms its commitment to fostering trust in financial innovation by striking a clear balance between enabling technological advancement and ensuring consumer protection while maintaining financial stability. This memorandum aligns with the UAE’s national strategy for artificial intelligence and applies to all licensed financial institutions within the approved regulatory framework to ensure the robustness and sustainability of the financial sector.
In this context, H.E. Khaled Mohamed Balama, Governor of the Central Bank of the UAE, stated: “The purpose of the guidelines is to establish a clear framework for the responsible use of artificial intelligence and machine learning in the financial sector, enhancing consumer protection and reinforcing governance and transparency principles, while underscoring the importance of human oversight and data protection requirements.”