The Artificial Intelligence Revolution in Digital Finance in Saudi Arabia: A Comprehensive Review and Proposed Framework

Abstract

Artificial Intelligence (AI) has proliferated in the last few years due to the vast data we pro-duce daily and available computing power. AI can be applied in many different sectors, such as transportation, education, healthcare, banking, and finance, among many others. The financial industry is rapidly embracing AI due to its potential for high-cost savings in financial services. AI could transform the financial sector by creating opportunities for tailored, faster, and more cost-effective services. Saudi Arabia is emerging as a fast-growing market in this industry with a strong commitment to technology-driven institutions. While AI is gaining prominence and receiving government support, it has not yet become a critical component for enhancing the efficiency of financial transactions. Limited published research on AI adoption in the Saudi Arabian financial industry calls for a comprehensive literature review to examine the current state of AI implementation in this sector. Therefore, this study explores the benefits, limitations, and challenges of leveraging AI in finance, highlighting the importance of ethical and regulatory considerations for successful AI adoption in the sector. This study’s findings reveal that research has been conducted on how AI improves processes in the financial sector by integrating critical components and efficient algorithms tailored to the industry’s needs. Based on these findings, this study proposes a sequential framework at the macro and micro levels of management to guide AI’s development and integration into the financial sector. Additionally, the framework draws insights from the existing literature to provide a detailed understanding of opportunities, challenges, and areas for improvement to maximize AI’s potential in the Saudi Arabian financial sector.

Potential Applications of Artificial Intelligence (AI) in Managing Polypharmacy in Saudi Arabia: A Narrative Review

“…The adoption of AI in the Saudi Arabian healthcare system will likely progress gradually through the influence of advancements, research findings and healthcare policies. Effectively utilising AI while prioritising safety and wellbeing requires ongoing collaboration between healthcare providers, policymakers and researchers [83].…”

Ethical Implications of Ai in Financial Decision – Making: A Review With Real World Applications

“…This trend is particularly evident in Jordan's banking sector, where AI-driven innovations have led to improved service delivery and operational efficiency. In Saudi Arabia, the AI revolution within the digital finance sector is characterized by a comprehensive framework proposed by Al-Baity (2023), which outlines the macro and micro levels of management necessary for guiding AI development and integration. This framework underscores the importance of ethical and regulatory considerations, suggesting that successful AI adoption in the financial sector hinges on addressing these critical aspects.…”

“…The discourse on the role of regulation and governance in AI applications in finance is critical, as it delineates the pathways through which these technologies are developed, implemented, and overseen within the financial ecosystem. The necessity for robust regulation and governance is underscored by the insights provided by Almustafa, Assaf, and Allahham (2023) and Al-Baity (2023), who elucidate the current landscape of AI integration in financial services. These studies highlight the transformative impact of AI on traditional banking operations and customer service paradigms, emphasizing the need for regulatory frameworks that can accommodate the dynamic nature of AI technologies while safeguarding ethical principles and consumer interests.…”

“…One of the primary limitations in the current discourse on ethical AI in finance, as suggested by the insights from Almustafa, Assaf, and Allahham (2023) and Al-Baity (2023), is the dynamic nature of technological evolution. The rapid pace at which AI technologies evolve often outstrips the development of corresponding ethical frameworks and regulatory standards.…”

The role of AI integration and governance standards: Enhancing financial reporting quality in Islamic banking

“…Another significant effect of artificial intelligence (AI) is its ability to facilitate thorough monitoring and auditing of financial transactions. This promotes transparency in operations, thereby enhancing the level of accountability within Islamic banking and contributing to a more efficient economy (Al-Baity, 2023;Jan et al, 2023). One significant effect is the enforcement of adherence to Islamic financial norms by using AI algorithms (Chong, 2021).…”