Generative AI Adoption Nearly Triples in DIFC, Reveals DFSA AI Survey 2025

The Dubai Financial Services Authority (DFSA) has released the findings of its AI Survey 2025, revealing a major surge in artificial intelligence (AI) adoption within the Dubai International Financial Centre (DIFC) over the past year.

According to the report, 52% of DFSA-authorised firms are now actively using AI — up from 33% in 2024 — marking a 57% year-on-year increase. The growth is even more pronounced in the use of Generative AI (GenAI), which has nearly tripled (+166%) in just 12 months, underscoring the rapid evolution of financial technology within the DIFC.

AI Becomes Core to Financial Operations

The survey, conducted in June 2025 with participation from 661 Authorised Firms (an 88% response rate), highlights that AI integration is now widespread across banking, capital markets, wealth management, and fintech sectors.
Momentum shows no signs of slowing, with:

60% of firms planning to expand AI use in the next 12 months.
75% expecting to do so within the next three years.

The DFSA notes that AI is quickly becoming a core operational component of financial services in the Centre — from boosting efficiency and compliance to enhancing customer engagement and decision-making.

Governance Still Catching Up

Despite the sharp rise in adoption, governance frameworks are still developing. The report found that 60% of firms have implemented some form of AI governance structure, while 21% lack clear accountability or oversight mechanisms, even when AI plays a critical role in business operations.

Firms also expressed the need for clearer regulatory guidance around AI governance, ethical use, and supervisory expectations. The call for harmonized regulatory standards across the UAE financial sector was another recurring theme.

Balancing Innovation with Integrity

Justin Baldacchino, Managing Director, Supervision at the DFSA, emphasised the importance of responsible innovation: “The DIFC’s financial services ecosystem is embracing AI at pace. While AI adoption remains at a nascent stage for many firms, there is growing recognition of its strategic potential to enhance organisation-wide performance,” he said.

“Our priority at the DFSA is to balance innovation with integrity — ensuring that when firms harness AI’s potential, they do so within frameworks that protect customers, manage risk, and uphold market confidence.”

A Cautious, Risk-Based Approach

The DFSA noted that most firms are currently deploying AI primarily for internal processes rather than customer-facing applications, reflecting a measured and risk-aware approach to innovation.

As AI becomes more deeply embedded in financial operations, the DFSA plans to maintain a risk-based regulatory approach, ensuring oversight remains proportionate and responsive to emerging technologies without stifling innovation.

The regulator will continue engaging with firms and peer financial authorities across the UAE and globally to develop frameworks that enable responsible AI adoption while safeguarding financial stability and investor protection.

For full insights, access the DFSA AI Survey 2025 report.