The Banking Executive Issue - October 2025 Issue

Beyond the Hype many service-sector roles—customer service, logistics, retail, and even frontier fields like software develop- ment—AI tools can accelerate learn- ing curves and improve productivity. An inexperienced employee, guided by an AI assistant that draws on ac- cumulated operational experience, can deliver higher-quality work ear- lier in the training cycle. This leads to faster onboarding, more consistent service standards, and more efficient use of human talent. For Arab financial institutions, which often invest heavily in training due to fast-paced regulatory and technolog- ical shifts, AI-assisted learning could significantly reduce training costs while improving outcomes. Banks operating large call centers, back-of- fice processing hubs, and digital sup- port teams stand to benefit most. WHY EMERGING ECONOMIES ARE WELL POSITIONED The emerging world’s optimistic ap- proach to AI has a clear rationale: the technology enables countries to leapfrog traditional barriers that once limited economic and social progress. While they may not build frontier AI models, they are well po- sitioned to apply them at scale. For Arab economies, this perspective offers a valuable insight. The ques- tion is not whether the region should attempt to compete in foundational model development—an area domi- nated by global technology giants— but how it can accelerate development through targeted adop- tion, strategic regulation, and a com- mitment to building the right digital foundations. Many Arab states have already made significant strides in digital gover- nance, fintech expansion, and na- tional AI strategies. The opportunity now is to translate these efforts into broad-based adoption across finan- cial services, government institu- tions, and private-sector industries. A FORWARD-LOOKING RECOMMENDATION FOR ARAB BANKING LEADERS To fully benefit from AI’s expanding capabilities, Arab banks and finan- cial institutions should embrace a pragmatic and forward-leaning ap- proach. Three priorities stand out: 1. Invest in secure, interoperable data ecosystems that empower individuals while allowing insti- tutions to develop advanced AI applications responsibly. 2. Leverage AI-driven credit analyt- ics, SME tools, and digital pay- ment infrastructure to enhance financial inclusion and expand the bankable population. 3. Adopt AI-enabled training and operational systems to improve workforce skills, raise productiv- ity, and reduce long-term costs. By prioritizing these areas, Arab banking leaders can ensure that the region not only keeps pace with global developments but also uses AI to advance economic resilience, so- cial development, and financial sec- tor competitiveness. The opportunity is substantial—and the moment to act is now. the BANKING EXECUTIVE 30 ISSUE 202 OCTOBER 2025