UAE Finance Functions Driving Ahead In AI Adoption

Artificial Intelligence (AI) is becoming abundant across finance departments in the UAE as decision-makers focus on high-impact, targeted AI solutions across accounting, financial planning, analysis, treasury, tax, and risk.

As the UAE Government bets big on AI, KPMG's latest benchmarking study, Is Your Finance Function AI Ready?, confirms strong readiness, with 49 per cent of organisations report active AI plans in finance, 59 per cent of organisations are planning or running AI pilot projects, and 33 per cent are in the planning or early pilot stage.

Accounting and management control teams are leading in AI testing largely because of its potential benefits in narrative reporting, predictive analytics, and real-time insights. A leading regional bank in the UAE implemented generative AI tools to automate internal reporting, populate regulatory disclosures and support financial risk assessments. A government utility company also integrated an AI assistant to automate billing, generate internal finance reports and manage financial documentation workflows.

Despite adoption spreading, AI deployment is yet to translate into tangible impact. Only 37 per cent of UAE finance leaders report positive ROI from AI, compared to 66 per cent globally. Currently, UAE organisations dedicate 10 per cent of IT budgets to AI, close on the heels of the 13 per cent observed among global leaders, which reflects strong investment intent. However, the challenge is transforming investment into structured, scalable adoption to embed AI as a foundation for performance.

Bhaskar Sahay, Partner, Head of Accounting and Finance for the UAE and Oman, KPMG Middle East said,“The UAE Government's national vision and ongoing investment in AI are a catalyst for immense growth. However, challenges remain, with AI usage still fragmented despite interest from major organisations. Some Finance teams are ill-equipped to lead large-scale AI transformations, or they simply lack the know-how to integrate day-to-day decision-making with AI.

“To succeed with AI, it is critical for Finance teams to assess whether their ROI is robust and whether their first use cases are realistic given scattered data and legacy systems in many cases. This will enable them to gain buy-in and scale quickly through more focused implementation.”

Regulation is not holding back AI development in the UAE. According to KPMG's research, only 25 per cent of finance leaders in the UAE see regulation as a barrier to adoption. With no restrictive AI-specific laws and active government support, UAE organisations are in a unique position to close the gap with their global counterparts.

The study also found signs of a shifting focus to generative AI (GenAI). After leading early adoption, 41 per cent already use GenAI in financial reporting and are expected to increase to 88 per cent within the next three years. Additionally, 54 per cent of leaders will prioritise GenAI over traditional AI in the coming year, reflecting a broad consensus that this technology is no longer optional, but strategic.

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