Riyadh: Artificial intelligence (AI) adoption in the Middle Eastern banking sector could boost regional economic growth, potentially adding up to 13.6% to GDP by 2030, according to analysts.
Finastra’s Financial Services State of the Nation 2024 survey reveals that banks in the UAE and Saudi Arabia are advancing AI implementation, setting the stage for significant economic and operational gains.
The UAE leads as one of the top global adopters of AI in financial services, with 71% of its banks having deployed or upgraded AI capabilities in the past year, supported by robust public and private sector investments.
Saudi Arabia is also making strides, focusing on operational modernization and strategic partnerships. Both regions are prioritizing AI for core processes like Know Your Customer (KYC) and Anti-Money Laundering (AML) checks, rather than using it primarily for marketing, enhancing risk management, decision-making, and IT operations.
Adam Lieberman, Chief AI Officer at Finastra, noted, “The Middle East’s proactive regulators, advanced digital infrastructure, and open customer base create an ideal environment for banks to leverage AI.
By utilizing cloud-native platforms and unified data environments, banks can maximize AI’s potential to boost productivity, innovation, risk management, and expansion.”
The report also emphasizes that personalized customer experiences powered by AI are becoming the norm in financial services. UAE banks, in particular, excel in offering AI-driven chatbots for seamless, 24/7 customer service. With 93% of Saudi and 90% of UAE banks enthusiastic about AI, the region is set to unlock considerable value.
PwC predicts AI will contribute $320 billion to the Middle Eastern economy by 2030, while McKinsey estimates AI could add $1 trillion annually to the global banking sector.
As AI continues to evolve, agentic AI is proving transformative, enhancing user experiences and driving efficiency.
Finastra is committed to supporting Middle Eastern banks with advanced technology solutions, helping them tap into AI’s vast potential.
