Artificial Intelligence (AI) is being increasingly adopted in the UAE finance sector. Sector leaders are focusing on high-impact, targeted AI solutions for accounting, treasury, financial planning, taxation, and risk management.
According to KPMG study, 49% of finance teams in the UAE already use AI, 59% are planning or about to pilot initiatives, and a further 33% are in the planning or preliminary testing phase.
Accounting and management control teams are leading the way in AI testing because of its use in predictive analysis, narrative reporting, and providing real-time insights. A large regional bank in the UAE has adopted generative AI tools to support internal reporting, populate regulatory disclosures, and aid in financial risk assessments. A state-run utility firm has also implemented an AI assistant to automate billing, generate internal finance and better manage financial documentation workflows.
Even with the adoption of AI in UAE finance sector spreading, the impact is yet to be seen. KPMG cited that only 37% of finance leaders in the UAE report positive ROI from AI when compared to 66% worldwide. UAE businesses spend nearly 10% of their IT budgets on AI, second only to the global norm of 13%, demonstrating a clear intention to invest. The challenge is to transform these investments into structured and scalable adoption so that AI becomes a foundation for performance.
Regulation is not seen as a major barrier to adoption of AI in UAE finance sector. Only 25% of finance leaders identified regulatory frameworks as a challenge. With no restrictive AI-specific regulations and steady government backing, the UAE is in a good position to close the adoption gap with their global counterparts.
Generative AI (GenAI) is another domain that is seeing increased adoption. After leading early adoption, 41% currently use GenAI for financial reporting. This is expected to grow to 88% over the next three years. Furthermore, 54% of leaders is anticipated to invest more in GenAI compared to traditional AI tools in the coming year, highlighting its status as a strategic technology that is increasingly considered a must-have.