The UAE's finance sector is rapidly embracing artificial intelligence, with 49% of business leaders already deploying AI, surpassing the global average of 35%. According to KPMG's latest benchmarking study, "Is Your Finance Function AI Ready?", the UAE's encouraging momentum in AI adoption is driven by the government's national vision and ongoing investment in AI.
The study reveals that while 49% of finance teams in the UAE have integrated AI into their operations, only 37% report a positive return on investment from AI initiatives, contrasted with 66% globally. Organizations in the UAE dedicate around 10% of their IT budgets to AI, close to the global average of 13%.
The UAE's supportive environment for AI growth is evident, with only 25% of finance leaders seeing regulation as a barrier to AI adoption. Generative AI is on the rise, with 41% of finance leaders utilizing it for reporting, and projections indicate this number could escalate to 88% within three years.
However, despite interest from major organizations, AI usage remains fragmented, and some finance teams lack the know-how to integrate AI into day-to-day decision-making. The challenge lies in transforming investment into structured, scalable adoption to embed AI as a foundation for business operations.
As the UAE continues to invest in AI, it's likely that the finance sector will see significant benefits from AI adoption, including improved efficiency and decision-making. With 54% of those surveyed planning to prioritize Generative AI over traditional AI applications, its significance in financial operations is expected to grow.
