DFSA co-leads report on consumer-facing AI's transformative impact in financial services, offering key insights for global regulators

Dubai, UAE, 28 February 2025: The Dubai Financial Services Authority (DFSA) announced today the publication of a new GFIN artificial intelligence (AI) report which they have co-led with the UK's Financial Conduct Authority (FCA) on behalf of the Global Financial Innovation Network (GFIN). The GFIN AI report, titled Key insights on the use of consumer-facing AI in global financial services, outlines key topics such as 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.

As a founding member of the GFIN, a global network of more than 90 regulators and organisations committed to supporting financial innovation, the DFSA has played a leading role in the GFIN AI project.

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.

The GFIN AI report reflects a collective effort by members of the GFIN to better understand the opportunities and challenges AI presents to consumer-facing financial services.

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.

Key insights illustrate that:

• 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. The DFSA remains committed to advancing global collaboration and fostering responsible innovation to ensure financial services continue to evolve in a way that benefits consumers and economies alike.