Generative AI Adoption Nearly Triples at DIFC in Past Year

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Dubai: The Dubai Financial Services Authority (DFSA), the independent regulator of the Dubai International Financial Centre (DIFC), has reported a rapid acceleration in artificial intelligence (AI) adoption among financial firms, with 52% of firms now actively using AI, up from 33% in 2024.

Generative AI adoption saw the sharpest growth, rising by 166% over the past year.

The findings come from the DFSA’s AI Survey 2025, conducted in June, which captured data from 661 Authorised Firms across banking, capital markets, wealth and asset management, and fintech sectors, representing an 88% participation rate. The survey highlights how AI is being integrated and governed within the DIFC’s financial services ecosystem.

According to the DFSA, most firms now employ AI in at least one operational area, and a clear majority plan to expand AI deployment further over the next 12 months. While adoption is accelerating, the regulator emphasised that innovation must be supported by robust governance, ethical data usage, and sound risk management.

Justin Baldacchino, Managing Director of Supervision at DFSA, said, “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. Our priority is to balance innovation with integrity, ensuring firms harness AI responsibly, with clear accountability and oversight.”

The survey also indicates that many firms remain cautious, focusing AI use on internal operations rather than customer-facing applications. This measured approach reflects the need to build experience and appropriate governance frameworks.

The DFSA said it will continue following a risk-based approach to regulation, ensuring oversight is proportionate and responsive to emerging risks without imposing unnecessary burdens. The Authority will actively engage with firms and global regulators to support responsible innovation while safeguarding financial stability and investor protection.