AI cost savings are driving a major shift in UAE banking, according to a new industry study. The report found that more than four in ten UAE banks now use artificial intelligence to lower operational costs. Meanwhile, over half of the banks use AI to boost accuracy and reduce errors. This push reflects a broader trend toward modernisation and efficiency across the financial sector.
The findings come from a survey of more than 1,500 managers across 11 global markets. The study showed that most institutions now treat AI as a strategic priority. In fact, nearly nine out of ten financial firms worldwide plan to invest in modernisation over the next year. Many of them expect AI to play a central role in improving operations and customer experience.
In the UAE, banks are adopting AI for a range of uses. Many apply it to automate routine tasks, streamline workflows, and speed up processing. Others use AI to reduce mistakes in transaction handling and data entry. As a result, institutions can improve reliability while keeping costs under control. Several banks also deploy AI to support customer service and personalise product offerings.
The report highlights that only two percent of financial institutions globally said they do not use AI. This shows that AI has moved beyond experimentation. Banks now view it as essential to staying competitive in a fast-changing market. Furthermore, most respondents expressed optimism about AI’s impact. About 87 percent said they feel personally optimistic about AI adoption. At the same time, 86 percent said they expect positive outcomes for their institutions.
The study also points to a growing focus on security. UAE banks stand out for their planned investment in cybersecurity. The report noted that nine out of ten UAE institutions plan to raise security spending in the next 12 months. Globally, banks expect security budgets to rise by about 40 percent in 2026. They cited rising cyber threats, heavier reliance on digital platforms, and tighter regulations as key drivers.
In addition to security, UAE banks continue to invest in data platforms and advanced analytics. These tools help banks detect fraud and improve risk management. They also support efforts to make banking more accessible and inclusive. Some institutions use AI to tailor services for customers with specific needs, such as the elderly or people with disabilities.
Overall, the UAE banking sector appears ready to deepen its AI adoption. With strong investment and high confidence, banks aim to improve efficiency and strengthen customer trust. As the sector modernises, AI cost savings will likely shape the next phase of banking transformation in the UAE.
