UAE Central Bank issues new rules on AI use to protect banking customers

New guidance sets rules for safe AI use and stronger consumer protection

Last updated: February 23, 2026 | 12:31

Nivetha Dayanand, Assistant Business Editor

2 MIN READ

CBUAE issues a guidance note to protect consumers and ensure the responsible use of artificial intelligence in the financial sector.

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Dubai: The UAE Central Bank has issued new guidance aimed at protecting consumers and ensuring responsible use of artificial intelligence across the financial sector, marking a regulatory step as banks accelerate digital transformation.

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The framework applies to all licensed financial institutions and establishes rules governing how artificial intelligence and machine learning technologies can be deployed while safeguarding consumer rights and financial stability.

Authorities said the move reflects a proactive supervisory approach designed to keep pace with rapid changes in smart financial services and emerging digital risks.

Clear rules on governance and transparency

The guidance sets out core principles designed to strengthen oversight and accountability in the use of advanced technologies.

These include requirements related to governance structures, fairness and non-discrimination, transparency and explainability of AI decisions, and effective human oversight of automated systems.

Data management and privacy protections also form a central part of the framework, reflecting rising concerns about the handling of sensitive customer information.

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Balancing innovation with protection

The Central Bank said the initiative aims to strike a balance between enabling innovation and ensuring consumer safeguards remain firmly in place as institutions adopt advanced technologies.

“The guidance note aims to establish a clear framework for the responsible use of artificial intelligence and machine learning in the financial sector, in a way that enhances consumer protection, reinforces governance and transparency principles, and emphasises the importance of human oversight and data protection requirements,” said Khaled Mohamed Balama, Governor of the Central Bank of the UAE.

Aligning with national AI strategy

The framework aligns with the UAE’s broader artificial intelligence strategy and forms part of efforts to strengthen resilience across the financial system while maintaining public confidence in digital banking services.

Officials said the guidance will support sustainable innovation while ensuring institutions adopt technologies responsibly and maintain high standards of consumer protection and operational integrity.

Nivetha DayanandAssistant Business Editor

Nivetha Dayanand is Assistant Business Editor at Gulf News, where she spends her days unpacking money, markets, aviation, and the big shifts shaping life in the Gulf. Before returning to Gulf News, she launched Finance Middle East, complete with a podcast and video series. Her reporting has taken her from breaking spot news to long-form features and high-profile interviews. Nivetha has interviewed Prince Khaled bin Alwaleed Al Saud, Indian ministers Hardeep Singh Puri and N. Chandrababu Naidu, IMF’s Jihad Azour, and a long list of CEOs, regulators, and founders who are reshaping the region’s economy. An Erasmus Mundus journalism alum, Nivetha has shared classrooms and newsrooms with journalists from more than 40 countries, which probably explains her weakness for data, context, and a good follow-up question. When she is away from her keyboard (AFK), you are most likely to find her at the gym with an Eminem playlist, bingeing One Piece, or exploring games on her PS5.