Generative AI Adoption Among DIFC Firms Nearly Tripled In The Past Year

The Dubai Financial Services Authority (DFSA) has published findings from its 2025 AI survey, highlighting a swift increase in AI use among financial firms at the Dubai International Financial Centre (DIFC). The survey shows that 52% of firms are now using AI, up from 33% in 2024. Notably, the adoption of Generative AI has surged by 166%.

The DFSA's survey, conducted in June 2025, involved 661 Authorised Firms across sectors like Banking, Capital Markets, Wealth & Asset Management, and Fintech. With an 88% participation rate, it provides insights into AI adoption and governance within DIFC's financial services sector. The results indicate a significant market shift as most firms integrate AI into their operations.

Justin Baldacchino, Managing Director of Supervision at the DFSA, remarked on the rapid embrace of AI within DIFC’s financial ecosystem. He noted that while many firms are still in early stages of adoption, there's growing recognition of AI's strategic potential to enhance performance across various areas such as operational efficiency and customer engagement.

Baldacchino stated: "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, from operational efficiency and regulatory compliance to customer engagement and sales."

The DFSA stresses that innovation should be supported by effective governance and oversight. Ethical data use and sound risk management practices are crucial. The regulator is actively working with the industry to develop guidance for responsible AI adoption. This ensures that when firms leverage AI’s potential, they do so within frameworks that protect customers and uphold market confidence.

The survey also highlights a cautious approach to deploying AI. Many firms focus on internal functions rather than external or customer-facing applications. This caution reflects the need to build experience and establish appropriate governance frameworks.

Future Engagements and Regulatory Approach

Looking ahead, the DFSA plans to maintain a risk-based regulatory approach. This ensures oversight remains proportionate to emerging risks without imposing unnecessary burdens on firms. The authority will continue engaging with local and global financial regulators to balance responsible innovation with safeguarding financial stability.

The DFSA aims to ensure governance frameworks evolve alongside AI adoption. Clear accountability and oversight are essential at every stage of implementation. This approach supports both innovation and integrity within the financial sector.

In coming months, the DFSA will actively collaborate with firms and other regulators in the UAE and globally. This collaboration aims to reinforce their commitment to balancing responsible innovation with investor protection.

With inputs from WAM