The UAE Central Bank has issued new guidelines to licenced financial institutions on the responsible adoption and use of artificial intelligence and machine learning to protect consumers and boost transparency and governance.
The guidance sets out core principles that serve as a reference for the optimal use of the two technologies by financial institutions. This includes governance and accountability, fairness and non-discrimination and transparency, the banking regulator said on Monday.
Effective human oversight, requirements related to data management and privacy are also part of the new framework.
The new guidance “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 principles are strengthened, and fair and sustainable practices are promoted”, the Central Bank said.
The UAE has been pushing to be an AI front-runner as it diversifies its economy away from oil. The country’s affinity for research in the technology has resulted in the establishment of start-ups, partnerships and investments from industry leaders, including Microsoft, Nvidia and OpenAI.
In 2019, the UAE announced the establishment of a university dedicated to the technology, the Mohamed bin Zayed University of Artificial Intelligence. Two years earlier, the Emirates was among the first countries in the world to appoint an AI minister, Omar Al Olama.
The UAE has also teamed up with the US to develop an AI campus, which to include 5 gigawatts of capacity for AI data centres, in Abu Dhabi.
In the latest guidelines, the UAE Central Bank said licenced financial institutions should adopt a documented governance framework for AI and ML that is commensurate with the size, nature and complexity of their operations.
A culture of responsible use of AI with an understanding of the risks of it should also be promoted in financial institutions, in conjunction with all relevant central bank regulations and standards.
Senior management and the board of directors of the financial institutions should also be responsible and accountable for AI and ML systems and outcomes, it added.
Financial institutions are also expected to ensure that AI and ML systems do not result in discriminatory or manipulative outcomes against individuals or groups, according to the new guidelines.
Other specifications include maintaining transparency with customers and relevant stakeholders about the use of AI.
Consumers should also be able to request human review or explanation of AI-generated decisions, and alternative arrangements should be available where a customer does not wish to be subject to an AI decision, according to the new guidelines.
The Central Bank of the UAE is among many other global banking regulators that have issued guidelines to financial institutions on AI adoption.
Last week, the US Treasury Department issued resources to support quicker and more widespread adoption of AI in the financial sector through more robust AI cyber security and improved operational resilience.
The European Central Bank and the Reserve Bank of India have also issued guidelines for AI use in the financial sector, with a focus on accountability, fairness and equity. In the Middle East, Qatar Central Bank and Central Bank of Jordan have put in place AI use guidelines amid the rapid adoption of the technology in the banking sector.
