Artificial intelligence (AI) adoption across Dubai’s financial sector has accelerated sharply, according to new findings from the Dubai Financial Services Authority (DFSA).
The regulator’s 2025 AI survey reveals that 52 per cent of firms in the Dubai International Financial Centre (DIFC) are now using AI — up from 33 per cent in 2024 — with particularly strong growth in Generative AI, which rose by 166 per cent year-on-year.
Conducted in June 2025, the DFSA’s survey captured data from 661 Authorised Firms operating across Banking, Capital Markets, Wealth and Asset Management, and Fintech, representing an 88 per cent participation rate.
AI in DIFC
The results highlight how AI is increasingly being integrated into core financial operations and decision-making processes within DIFC.
The findings mark a significant shift in the market, with most firms now using AI in at least one area of their operations — and a clear majority planning further deployment over the next 12 months.
While welcoming the acceleration of innovation, the DFSA emphasised the importance of effective governance, ethical data use, and sound risk management to ensure responsible AI adoption.
The Authority said it continues to work closely with the industry to develop frameworks and guidance for sustainable and secure AI integration.
Innovation with integrity
Justin Baldacchino, Managing Director, Supervision, of the DFSA, said: “The DIFC’s financial services ecosystem is embracing AI at pace. While AI adoption remains at a nascent stage for many firms, there is growing recognition of its strategic potential to enhance organisation-wide performance, from operational efficiency and regulatory compliance to customer engagement and sales.
“Our priority at the DFSA is to balance innovation with integrity – ensuring that when firms harness AI’s potential, they do so within frameworks that protect customers, manage risk, and uphold market confidence.
“It is therefore important that governance frameworks evolve in parallel, with clear accountability and oversight at every stage of adoption.”
Controlled and risk-based deployment
The DFSA noted that firms are taking a measured approach to AI use, focusing primarily on internal functions and processes rather than customer-facing applications.
This reflects both the early stage of implementation and the need for institutions to build practical experience and governance capacity before expanding usage.
The regulator confirmed that it will continue to apply a risk-based approach to oversight, ensuring its regulatory response remains proportionate, flexible, and aligned with global best practices.
In the coming months, the Authority will maintain active engagement with both domestic and international financial regulators to promote responsible innovation while safeguarding financial stability and investor protection.
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