DFSA AI Survey 2025 report reveals:
- AI integration within DFSA Authorised Firms has accelerated rapidly: 52% of firms now use AI – up from 33% in 2024 – with growth particularly pronounced in the adoption of Generative AI (GenAi) which has nearly tripled in the last 12 months (+166%).
- Momentum continues to build: 60% of firms expect to increase their use of AI over the next 12 months, and 75% over the next three years – signalling that AI is on track to become a core operational component of financial services within the DIFC.
- Governance practices continue to develop: While 60% of firms have some form of governance structure for AI, 21% still lack clear accountability or oversight mechanisms, even in cases where AI use is critical to business operations.
- Firms are calling for greater regulatory clarity and guidance: on AI governance, ethical use, and supervisory expectations. Harmonisation of regulatory expectations across the UAE financial sector was also a request from firms.
Dubai, United Arab Emirates,November 2025: The Dubai Financial Services Authority (DFSA), the independent regulator of the Dubai International Financial Centre (DIFC), has today
released the results of its artificial intelligence (AI) survey 2025, revealing a rapid acceleration in AI adoption among financial firms in the Centre, with 52% of firms actively using AI – up from 33% in 2024 – with growth particularly pronounced in the adoption of Generative AI (+166%).
The survey, conducted in June 2025, captured data from 661 Authorised Firms (88% participation rate) operating across Banking, Capital Markets, Wealth & Asset Management, and Fintech – providing an insight into how AI is being adopted and governed within the financial services sector in the DIFC. The findings reflect a significant shift in the market, with most firms now integrating AI in at least one area of their operations – and a clear majority planning further AI deployment, with expected continued adoption over the next 12 months.
The DFSA emphasised that, while the pace of innovation is welcome, it must be underpinned by effective governance and oversight, ethical use of data, and sound risk management practices. The regulator continues to engage closely with the industry to develop guidance and frameworks for responsible AI adoption.
Justin Baldacchino, Managing Director, Supervision, of the 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 at the DFSA is to balance innovation with integrity – ensuring that when firms harness AI’s potential, they do so within frameworks that protect customers, manage risk, and uphold market confidence. It is therefore important that governance frameworks evolve in parallel, with clear accountability and oversight at every stage of adoption.”
The survey results also underscore a cautious and controlled approach to deployment. Many firms continue to focus their use of AI on internal functions and processes, rather than external or customer-facing applications. This caution is reflected in the divergence of AI applications in use, as well as the need to build experience and develop appropriate governance frameworks.
The DFSA will continue to follow a risk-based approach to regulation, ensuring that its oversight remains proportionate and responsive to emerging risks without imposing unnecessary burden on firms. In the months ahead, the Authority will continue to engage actively with firms and other financial regulators in the UAE and globally to chart a path forward that reinforces our commitment to balance the enabling of responsible innovation with safeguarding financial stability and investor protection.
The Dubai Financial Services Authority (DFSA) is the independent regulator of financial services conducted in and from the Dubai International Financial Centre (DIFC), a purpose-built financial free zone in Dubai, UAE. The DFSA regulates and supervises financial services firms and markets in the DIFC. These include asset managers, banks, custody and trust services, commodities futures traders, fund managers, insurers and reinsurers, traders of securities and fintech firms. We supervise exchanges and trading platforms for both conduct and prudential purposes, overseeing an international securities exchange (Nasdaq Dubai) and an international commodities derivatives exchange (Gulf Mercantile Exchange). The DFSA is also responsible for supervising and enforcing anti-money laundering and countering the financing of terrorism requirements applicable in the DIFC. Please refer to the DFSA’s website for more information.
Justin Baldacchino is the Managing Director of Supervision at the DFSA, bringing 25 years of international finance experience. He possesses deep expertise in regulatory interpretation, liaison, implementation, risk, regulatory affairs, compliance, anti-money laundering (AML), capital, liquidity, innovation, and technology. Joining the DFSA in 2020, Mr Baldacchino previously served as the Group Head of Regulatory Compliance for ANZ Bank in Australia and held various senior roles at JP Morgan in Hong Kong, including Head of Regulatory Compliance, Asia-Pacific, and Head of International Operational Risk, Asia-Pacific. He also served as Head of Compliance and Risk Governance, Asia for National Australia Bank in Hong Kong. Mr Baldacchino is an alumnus of Melbourne Business School with an MBA and a Post Graduate Diploma, and he holds a Bachelor of Economics from La Trobe University. He completed the Harvard Executive Programme in Regulatory Strategic Management and is a certified AML Specialist. He has served as an Executive Board Member for the Association of Certified Anti-Money Laundering Specialists and is currently a member of The Basel Consultative Group.
