---
title: CBUAE Issues New AI and ML Guidance for Financial Institutions
description: CBUAE Issues New AI and ML Guidance for Financial Institutions
---

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# [CBUAE Issues New AI and ML Guidance for Financial Institutions](https://www.plenitudeconsulting.com/news-insights/cbuae-issues-new-ai-and-ml-guidance-for-financial-institutions)

 Written by [Insight & Partnership Team](https://www.plenitudeconsulting.com/news-insights/author/insight-partnership-team) | Jun 23, 2026 2:45:46 PM

 

Key insights included:

➡️ **Governance & Accountability:** Boards and senior management remain accountable for AI systems, outcomes, oversight, risk management and compliance, with AI governance expected to align with the CBUAE Model Management Standards (MMS);

➡️ **Fairness & Bias Controls:** Institutions must ensure AI systems do not produce discriminatory or manipulative outcomes and should conduct regular testing to identify and remediate bias, including following material model changes;

➡️ **Transparency & Explainability:** Firms should clearly disclose the use of AI, particularly for high-impact decisions, provide understandable explanations of AI-driven outcomes and communicate with consumers in both Arabic and English;

➡️ **Human Oversight:** Meaningful human oversight should be applied to AI-driven processes, particularly where decisions materially affect consumers, with customers able to request human review of AI-generated outcomes;

➡️ **Continuous Monitoring:** AI models should be subject to ongoing monitoring, validation and periodic independent review to ensure reliability, fairness and continued alignment with consumer protection objectives; and

➡️ **Third-Party AI Risk Management:** Firms using external AI providers should conduct due diligence, maintain audit rights, monitor provider developments and ensure outsourced AI solutions meet the same standards as internal models.

✅ Firms should review AI governance frameworks, model risk management controls, consumer protection processes and third-party AI oversight arrangements to ensure alignment with the CBUAE’s expectations for responsible AI adoption and use.

💡 Plenitude’s AI Assurance Services are backed by world-leading experts, supporting clients in the ongoing monitoring and assessment of risks and controls. Visit our website or reach out directly to learn more: [https://www.plenitudeconsulting.com/services/ai-assurance-services](https://www.plenitudeconsulting.com/services/ai-assurance-services)

 

 

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