AI-driven compliance and risk management in finance: A comparative study of global and Arab regulatory approaches

Abstract

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.