AI adoption in financial services: Saudi Arabia takes the lead with UAE close behind, reveals global survey

Financial institutions in Saudi Arabia and the UAE are leading the way in adopting artificial intelligence (AI) in financial services, according to a recent global survey conducted by Finastra. The survey found that Saudi Arabia ranks highest and the UAE second highest globally for AI adoption in the last 12 months. Additionally, 90% of respondents in the UAE and 91% in Saudi Arabia believe that Open Finance enables a greater range of financial services, highlighting the importance of technological advancements in the industry.

Despite economic constraints, financial institutions in both countries have shown a strong commitment to investing in AI, Banking as a Service (BaaS), and embedded finance. The survey revealed that the majority of firms in the UAE and Saudi Arabia expect their investments to return in full before the end of H1 2024. This positive sentiment is reflected in the high adoption rates of AI, with 55% of respondents in Saudi Arabia and 45% in the UAE stating that they have deployed or improved AI in the last year.

Moreover, both regions are looking towards the future with interest in generative AI (Gen AI). Decision-makers in Saudi Arabia and the UAE are particularly keen on this technology, with a significant percentage already incorporating it into their operations. When asked about the priority use cases for Gen AI, respondents in both countries highlighted automation of manual tasks and data processing for environmental, social, and governance (ESG) purposes as key benefits.

The survey also noted that financial institutions in the UAE and Saudi Arabia are at the forefront of BaaS adoption. Nearly half of institutions in the UAE and over half in Saudi Arabia have improved or deployed BaaS in the past year, surpassing the global average. Additionally, the majority of leaders in both countries believe in the importance of supporting ESG initiatives and vulnerable audiences.

Simon Paris, CEO at Finastra, commented on the findings, emphasizing the industry’s commitment to innovation and technology. He noted that despite the challenging economic climate, investment in AI, BaaS, and embedded finance remains a top priority for financial services organizations in the UAE and Saudi Arabia. Paris also highlighted the industry’s dedication to ESG initiatives and collaboration around Open Finance.

Overall, the survey underscores the UAE and Saudi Arabia’s position as leaders in technological innovation in the financial services industry, setting a promising path for future advancements. Financial institutions in both countries are excited about the pace of change and are optimistic about the opportunities that advanced technologies like AI can bring to the industry.