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Record STMT-W7FFFD7Soft law

Guidance Note on Consumer Protection and the Responsible Adoption and Use of Artificial Intelligence and Machine Learning by Licensed Financial Institutions in the U.A.E.

Guidelines State lawMiddle East · AEin force

This guidance note from the Central Bank of the UAE outlines principles and guidelines for licensed financial institutions regarding the consumer protection and responsible adoption of artificial intelligence and machine learning. It covers governance, fairness, transparency, data quality, continuous monitoring, and human oversight. The document aims to promote ethical AI use, mitigate risks, and ensure fair treatment of consumers in financial services.

Summary and content fields are drawn from the document text and are pending editorial review.

Who issued it

Central Bank of the UAERegulator · AE
Lead issuer
Legal forceSoft law
Under whose authorityState law
Judged fromfull text

Who it governs

RegulatorsCompaniesAI developers and providersAI deployers and usersConsumers

This document is for licensed financial institutions in the UAE to guide their responsible development and deployment of AI technologies.

Sectors
Finance and insurance · Licensed Financial Institutions

What the document contains

What's covered

The document covers principles and guidelines for licensed financial institutions adopting artificial intelligence and machine learning, focusing on consumer protection, data quality, transparency, model monitoring, human oversight, and third-party risk management.

What's missing

Specific statutory penalty amounts or fines for non-compliance are not detailed.

Key takeaways
  • Licensed financial institutions in the UAE must adopt a documented governance framework for AI commensurate with their operations.
  • AI and ML systems must not result in discriminatory or manipulative outcomes against individuals or groups.
  • Institutions should maintain transparency with customers regarding AI usage, especially for high-impact decisions, and offer plain-language disclosures.
  • AI systems must operate under meaningful human oversight, categorized through human-in-the-loop, human-on-the-loop, or human-out-of-the-loop models.
  • Institutions remain fully responsible for outsourced AI functions and must maintain robust third-party risk management.
Principles it states
Responsible and ethical use and transparencyFairness and non-discriminationAccountability and explainabilityRobustness, safety, and security
Outline
1 Definitions
2 Governance and Accountability
3 Fairness/Non-Discrimination and Ethics
4 Transparency and Explainability
5 Data Quality, Privacy and Security
6 Continuous Monitoring and Review
7 Human Oversight and Consumer Protection
8 Integration with Existing Frameworks
9 Outsourcing and Third-Party Risk
10 Ethical Collaboration and Innovation
IssuedNot recorded
Length2,696 words
FormatNot recorded
Scopenational

How it scores

Pending review

Each score is backed by a quote verified against the document text. Editorial review has not yet confirmed them.

Accountability

4/5

Clear responsibility for AI outcomes

Senior management and the Board of Directors of LFIs should be responsible and accountable for AI and ML systems and outcomes, model selection/development, deployment, accountability

Section 2

screening score · 2026-10-23

Fairness

4/5

Non-discrimination and equitable treatment

LFIs are expected to ensure that AI and ML systems do not result in discriminatory or manipulative outcomes against individuals or groups.

Section 3

screening score · 2026-10-23

Human Dignity

2/5

Respect for the inherent worth of persons

AI and ML systems do not result in discriminatory or manipulative outcomes against individuals or groups.

Section 3

screening score · 2026-10-23

Human Oversight

4/5

Humans remain in control of consequential decisions

LFIs should ensure that AI and ML systems operate under meaningful human oversight and judgement, particularly for decisions that have significant implications for consumers

Section 7

screening score · 2026-10-23

Privacy

4/5

Protection of personal data and private life

LFIs should incorporate privacy‑by‑design and security‑by‑design principles into AI systems and maintain safeguards to protect data from unauthorised access or misuse.

Section 5

screening score · 2026-10-23

Transparency

4/5

Openness about how AI systems work and are used

LFIs should be transparent with customers and relevant stakeholders about the use of AI, particularly in respect of high ‑impact decisions, and if they are communicating or interacting with an AI application.

Section 4

screening score · 2026-10-23

Enforcement

4/5

Consequences and compliance mechanisms with real force

No AI system or application should be deployed or used if it is discriminatory or manipulative or develops as such post-deployment.

Section 3

screening score · 2026-10-23

Impact Assessment

4/5

Required assessment of an AI system's risks/impacts before or during use

AI deployed should be subject to periodic testing, i.e. once a year or each time a model is upgraded, materially changed or a new one is introduced, to identify and remediate undue/unintended embedded biases or discriminatory outcomes.

Section 3

screening score · 2026-10-23

Topics

artificial_intelligence consumer_protection financial_institutions algorithmic_fairness model_governance