The Banking Executive Magazine - February 2026 Issue 2

the BANKING EXECUTIVE 44 ISSUE 206 FEBRUARY 2026 FinTech and AI Chornicle The Central Bank of the United Arab Emirates (CBUAE) has issued a guid- ance note on the consumer protec- tion and responsible adoption and use of artificial intelligence and ma- chine learning by licensed financial institutions operating in the UAE. This step reflects the CBUAE’s proac- tive supervisory approach and its commitment to keeping pace with rapid developments in digital trans- formation and smart financial serv- ices. It aims to establish a clear framework to guide financial institutions in the safe and responsible deployment of these technologies, ensuring that consumer rights are safeguarded, governance and transparency princi- ples are strengthened, and fair and sustainable practices are promoted. The Guidance sets out core princi- ples that serve as a reference for the optimal use of such technologies. These include governance and ac- countability, fairness and non-dis- crimination, transparency and explainability, effective human over- sight, as well as requirements relating to data management and privacy. Through the Guidance, the CBUAE emphasises its commitment to foster- ing trust in financial innovation by striking a clear balance between en- abling technological advancement, ensuring consumer protection, and maintaining financial stability. The Note aligns with the UAE’s national strategy for artificial intelligence and applies to all licensed financial insti- tutions within the supervisory ecosystem, thereby supporting the resilience and sustainability of the fi- nancial sector. Khaled Mohamed Balama, Governor of the Central Bank of the UAE, said, “The guidance note aims to establish a clear framework for the responsible use of artificial intelligence and ma- chine learning in the financial sector, in a way that enhances consumer protection, reinforces governance and transparency principles, and em- phasises the importance of human oversight and data protection re- quirements.” UAE CENTRAL BANK ISSUES GUIDANCE FOR RESPONSIBLE USE OF AI IN FINANCE