The Dubai Financial Services Authority (DFSA) has co-led with the UK’s Financial Conduct Authority a new artificial intelligence report into the transformative role of AI and machine learning (ML), with a focus on their application within risk management, customer service, fraud detection, and investment strategies.
On behalf of the Global Financial Innovation Network, the GFIN AI report, titled ‘Key insights on the use of consumer-facing AI in global financial services‘ involved the DFSA working alongside the FCA to facilitate international roundtables and to host discussions on AI’s adoption in consumer-facing financial services, the regulators brought together more than 40 other regulators, industry stakeholders, and financial innovators across multiple jurisdictions.
As a founding member of the GFIN, a global network of more than 90 regulators and organisations committed to supporting financial innovation, the DFSA said on 28 January it played a leading role in the GFIN AI project.
AI is poised to significantly impact how individuals, households, and organisations interact with their daily finances, including how they earn, spend, save, invest, and plan for the future, the statement said.
Among the key insights, consumers are increasingly seeking clarity on how robo-advisors make decisions, with a growing demand for transparent decision-making processes in automated financial advice.
AI’s role in expanding financial inclusion is clear, assisting the unbanked and underbanked to access the financial tools needed to build better, more resilient futures.
Although AI-powered open finance models drive innovation, they also present governance, accountability, and cybersecurity challenges, therefore highlighting the importance of balancing risk and opportunity.
Global collaboration is essential for harnessing AI’s full potential whilst protecting consumers, firms, and markets across borders.
The GFIN AI report is designed to facilitate knowledge sharing and insights rather than serve as regulatory guidance.
Ian Johnston, chief executive of the DFSA, said: “AI is unlocking new possibilities in financial services, from enhancing accessibility to creating personalised solutions for consumers. As a regulator within the GFIN, the DFSA is committed to fostering innovation in financial services while ensuring that integrity, transparency, and agility remain at the forefront. This report captures a global perspective on how AI can transform financial systems for the better, but also highlights the importance of a robust regulatory framework to address emerging risks.”
The GFIN AI Project paves the way for continued global collaboration, including exploring the feasibility of a global AI sandbox and enhanced information-sharing frameworks among regulators.
