AI-driven compliance and risk management in finance: A comparative study of global and Arab regulatory approaches
Artificial intelligence is transforming risk management and regulatory
compliance in the financial sector, prompting leading regulators, including the United
States Department of the Treasury and the central banks of the Gulf, to issue AI-specific
governance directives in 2025 and 2026. This paper presents a qualitative, descriptive analytical,
and comparative study of this transformation, focusing on the United States'
Financial Sector AI Risk Management Framework (FS AI RMF) and the United Arab
Emirates Central Bank's 2026 AI guidance note, complemented by case studies of BNP
Paribas (France) and Emirates NBD (UAE). Four hypotheses are evaluated through
qualitative pattern-matching: the transition from reactive to proactive compliance; the
regulatory risk of opaque “black box” models; a UAE–Saudi regulatory disparity in AI
governance; and the current global dominance of principles-based regulation. All four
hypotheses are supported. The study concludes that the UAE is emerging as a regional
regulatory benchmark, while the wider Arab region remains at an earlier stage of this
evolution.
ABSTRACT:
The creative economy has swiftly expanded in recent decades, defined by
Industry 4.0. Saudi Vision 2030 has created a cultural and creative environment by
Artificial intelligence is transforming risk management and regulatory
compliance in the financial sector, prompting leading regulators, including the United
States Department of the…