Artificial intelligence is rapidly transforming finance functions across the UAE, with organisations ramping up investments in accounting, financial planning, treasury, tax, and risk management. According to KPMG’s latest benchmarking report Is Your Finance Function AI Ready?, the UAE is emerging as one of the most prepared markets globally, though challenges remain in turning investment into measurable returns.
The study reveals that 49 percent of organisations in the UAE already have active AI strategies within their finance departments, while 59 percent are running or planning pilot projects. A further 33 percent are in the early stages of testing AI-driven tools. Accounting and management control teams have taken the lead, deploying AI for predictive analytics, narrative reporting, and real-time insights.
Practical applications are also expanding. A leading UAE-based bank has implemented generative AI tools to automate internal reporting, enhance regulatory disclosures, and strengthen financial risk assessments. Meanwhile, a government utility has adopted an AI assistant to manage billing processes, produce financial documentation, and streamline internal reporting.
Despite the surge in adoption, UAE finance leaders say the impact of AI is still limited. Just 37 percent reported a positive return on investment, compared with 66 percent globally. Currently, local organisations allocate about 10 percent of IT budgets to AI—just behind the 13 percent average of global leaders. Analysts note that the challenge lies in scaling pilots into fully integrated solutions that can drive consistent performance improvements.
Bhaskar Sahay, Partner and Head of Accounting and Finance for the UAE and Oman at KPMG Middle East, highlighted both the opportunity and the hurdles. “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 strong interest from major organisations,” he said. “To succeed, finance teams must ensure that their early use cases are realistic given scattered data and legacy systems. Strong ROI and focused implementation are key to scaling adoption.”
Unlike some global markets, regulation is not seen as a major obstacle in the UAE. Only 25 percent of finance leaders cited regulatory issues as a barrier to adoption, reflecting the supportive stance of government authorities and the absence of restrictive AI-specific legislation.
The report also points to a sharp shift toward generative AI. Currently, 41 percent of UAE organisations use GenAI for financial reporting, a figure expected to rise to 88 percent within three years. More than half of finance leaders (54 percent) say they will prioritise GenAI over traditional AI in the coming year, underscoring its growing role as a strategic necessity rather than an experimental tool.
With strong government backing and rising corporate interest, industry experts believe the UAE’s finance sector is on the cusp of a major AI transformation. The challenge now, they say, is moving from experimentation to large-scale, structured adoption that can deliver tangible business value.
