UAE Central Bank Issues New Guidelines on Consumer Protection and Responsible Use of AI in Financial Services
The Central Bank of the United Arab Emirates has issued a new guidance memorandum outlining requirements for consumer protection and the responsible use of artificial intelligence (AI) and machine learning (ML) by licensed financial institutions operating in the country. The move reflects the Central Bank’s proactive supervisory approach and its alignment with the rapid evolution of digital transformation and smart financial services.
The guidance aims to establish a clear framework directing financial institutions to deploy AI and ML technologies in a safe and responsible manner that protects consumer rights, strengthens governance and transparency, and supports fair and sustainable financial practices.
The memorandum sets out key principles governing the optimal use of these technologies, including governance and accountability, fairness and bias mitigation, transparency and avoidance of opacity, effective human oversight, as well as data protection and privacy requirements.
It also includes provisions related to consumer disclosures, ensuring clarity of information in both Arabic and English, and guarantees appropriate mechanisms for objection or opt-out in high-impact cases resulting from automated decision-making.
Through these guidelines, the Central Bank reaffirms its commitment to fostering trust in financial innovation by striking a balance between enabling technological advancement and safeguarding consumer protection and financial stability. The guidance aligns with the UAE’s national artificial intelligence strategy and applies to all licensed financial institutions under the Central Bank’s regulatory framework to ensure the resilience and sustainability of the financial sector.
In this context, Khaled Mohamed Balama, Governor of the Central Bank of the UAE, stated:
“The guidance memorandum aims to establish a clear framework for the responsible use of artificial intelligence and machine learning technologies in the financial sector, enhancing consumer protection while reinforcing principles of governance and transparency, with a strong emphasis on human oversight and data protection requirements.”