DFSA AI Survey 2025

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The Dubai Financial Services Authority (DFSA) has released its Artificial Intelligence Survey 2025, offering one of the most comprehensive analyses to date of how financial institutions within the Dubai International Financial Centre (DIFC) are adopting, governing, and scaling AI technologies. The findings reveal a fast-advancing yet cautious market, where firms are embracing AI innovation while simultaneously recognising the growing need for robust governance, regulatory clarity, and risk management frameworks.

According to the survey, AI adoption in the DIFC has accelerated sharply, rising from 33% in 2024 to 52% in 2025, with Generative AI experiencing a 166% increase in uptake. This surge mirrors global trends, where generative models are quickly becoming embedded across business operations. The rise in adoption also reflects Dubai’s broader strategic vision, which positions the UAE as a global AI leader, supported by national frameworks such as the Dubai State of AI Report 2025.

Internal-First AI Deployment Strategy

While adoption is rapidly increasing, most DIFC firms remain in early phases of AI deployment. The survey shows that the majority are still operating at the proof-of-concept or pilot stage, with internal teams and operations acting as controlled testing environments. Nearly 79% of AI use cases focus on internal operations, systems, and controls, such as HR, compliance, auditing, and risk management.

This indicates a measured approach, allowing firms to strengthen governance frameworks and operational processes before progressing to external customer-facing applications. Nevertheless, momentum is building: the number of firms using AI across a considerable share of their business has tripled year-on-year.

Drivers and Barriers: Efficiency Leads, Regulation Remains a Concern

The top reasons firms are adopting AI remain consistent with the 2024 findings. Efficiency gains, enhanced performance, improved insights, and stronger risk management continue to dominate as primary drivers of adoption. However, challenges persist. Firms cite regulatory uncertainty, cybersecurity risks, and implementation costs as the top barriers to AI use — highlighting an industry that is eager to advance but cautious about doing so without clear regulatory direction .

Governance Gaps Widen as Adoption Scales

A significant theme in the 2025 report is the need for more robust governance. While 70% of AI-using firms now have formal governance frameworks, the DFSA notes that 21% still lack clear oversight or accountability structures for AI applications. More concerning is that a proportion of firms deploying AI in critical business areas continue to operate without governance mechanisms in place.

The report also reveals that governance challenges have shifted. While lack of expertise was the biggest concern in 2024, in 2025 the top challenge became the need for clearer regulatory guidance, as cited by 255 firms. This demonstrates rising maturity in the sector, with firms seeking structured frameworks to drive responsible innovation.

Heavy Reliance on Cloud and Third-Party Providers

Sixty percent of firms now run almost all their AI applications on cloud platforms, predominantly through major global providers such as AWS, Google Cloud, and Microsoft Azure . While cloud adoption accelerates scalability and innovation, it also introduces concentration risk — an increasingly prominent theme in DFSA oversight.

Clear Demand for Regulatory Harmonisation

Firms expressed strong interest in greater regulatory clarity, with 526 firms calling for clearer interpretation of existing regulations and 459 firms requesting practical guidance and use-case-driven examples. Many also highlighted the need for harmonised regulatory expectations across UAE financial regulators, particularly as AI applications frequently span multiple functions and jurisdictions.

Conclusion: A Market Moving Quickly but Thoughtfully

The DFSA AI Survey 2025 underscores a market transitioning from experimentation to scaled adoption — but doing so with caution, awareness, and increasing strategic intent. Firms recognise AI’s potential to transform financial services, but they also understand the critical importance of governance, oversight, and regulatory alignment.

As AI becomes more deeply embedded across the DIFC, the balance between innovation and risk management will remain central to ensuring a secure, resilient, and growth-ready financial ecosystem.

Reference: DFSA_Artificial_Intelligence_Survey_2025_Final.pdf