Accelerating the AI transformation: are banks finally making the leap?

Despite a buoyant 2024 for MENA’s financial sector, 2025 has introduced new volatility; shifting regulations, evolving customer expectations, and cost pressures are compelling banks in the GCC to reevaluate their digital strategies, with artificial intelligence (AI) emerging as a defining pillar.

The question is no longer whether AI will impact the region’s banking landscape but how quickly banks can industrialize AI at scale while balancing compliance, infrastructure, and execution risks.

While most tier-one banks have launched digital initiatives, the pivot from experimentation to enterprise-wide adoption remains complex. Conversations with former strategy and technology leaders suggest that institutions are moving beyond high-level vision decks and into the realities of modernizing data architecture, migrating to cloud environments, and reengineering core processes.

AI in banking: from vision to deployment

Generative AI and machine learning are being actively tested across risk, compliance, credit, and customer servicing. Recent initiatives in the region include:

• A UAE-based bank leveraging AI to automate KYC and onboarding at scale

• A Saudi institution developing AI-driven scoring models for SME lending

• Multiple banks piloting AI chat interfaces tailored for bilingual retail servicing

  
  

“Banks in the region have moved beyond isolated experiments; initiatives are now being funded through operating budgets, with direct oversight from executive leadership. The focus has shifted toward phased, strategic implementation across core functions. Said a Chief Technology Officer at Major Saudi International Bank

Conversations with our experts highlight the following points of note:

Execution vs ambition - While AI strategies are now widespread, scaled implementation remains uneven. Experts note a gap between stated goals and technical readiness, with many banks still reliant on legacy systems and siloed data environments.

Data foundations remain critical - Poor data lineage, inconsistent standards, and fragmented architecture continue to limit model performance and slow production deployment. Most banks require significant groundwork before real-time AI applications can be scaled securely.

AI compliance is accelerating - GCC regulators are increasing scrutiny around AI governance, bias mitigation, and explainability — prompting early investments in responsible AI frameworks. As regulatory expectations tighten, banks are prioritizing defensibility over speed.

Delivery models are evolving - To bridge talent and capability gaps, banks are pursuing partnerships with fintechs, system integrators, and specialist AI vendors. Experts believe that hybrid build-operate-transfer models will define the next wave of AI deployment in regional banking.

“The most important point to note is that transformation shouldn’t be purely technical; it’s also cultural, procedural, and architectural. Banks pursuing digitalization are having to rethink how decisions are made, how teams operate, and how systems connect in order to achieve meaningful, scalable change,” noted a former Head of Strategy at HSBC Middle East & Turkey.

While the full impact of AI on banking operations and which institutions will lead its successful deployment remains to be seen, there is clear momentum. Concrete steps from leading banks in the region signal that AI is no longer a theoretical ambition, but a core lever in the future of financial services.

ABOUT SWISSMEN

Swissmen is a leading expert network for business leaders and investors in the EMEA region, offering cutting-edge insights and strategic guidance. We provide instant access to tailored industry experts, empowering you to make crucial decisions and achieve impactful outcomes in a rapidly changing market landscape.

• Tailored Solutions for Accurate Insights

• Advanced solutions for niche and hard-to-find experts

• Exceptional Service and Support

  
  

Explore how Swissmen deliver the expertise you need to make informed decisions and gain a strategic advantage with rapid, precision-driven insights.

To learn more, visit us at swissmen.co or contact us at info@swissmen.co