AI is reshaping the GCC banking sector, causing short-term job displacement but offering long-term productivity and innovation opportunities through strategic reskilling.
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| GCC banks are embracing AI, which is displacing traditional roles but fostering innovation, job transformation, and new opportunities for skilled workers. Image: ChicHue |
Dubai, UAE — Feb 16, 2025:
The Gulf Cooperation Council (GCC) banking sector is undergoing a significant transformation as artificial intelligence (AI) disrupts conventional workflows, leading to job displacement in routine roles. However, the shift is also creating a rising demand for tech-driven expertise, particularly in areas like AI management and data analytics. As the UAE leads the charge toward a 90 percent cashless economy by 2026, digital-only services like Aani and neobanks such as Wio are becoming increasingly popular, with AI tools powering real-time financial analytics and SME services.
Despite these advances, economists caution that AI’s rapid adoption may cause short-term labor market disruptions. According to a PwC report, 55 percent of banking roles, particularly in customer service and back-office operations, could be automated within the next decade. However, banks like Emirates NBD are taking proactive steps to mitigate displacement through large-scale reskilling programs, while the UAE government has invested $135 million in AI education, including partnerships with universities, reads a KT report.
AI’s integration is also transforming the banking industry’s hiring strategies, with the demand for workers in AI training, cybersecurity, and ethical governance expected to grow. As AI becomes more integral, productivity in banking is projected to rise by 40 percent by 2030, with significant gains in fraud detection and credit decisions.
Though the implementation of AI presents ethical challenges, such as biased algorithms and cybersecurity vulnerabilities, the GCC is committed to responsible AI adoption. Regional collaboration on regulation is seen as essential to ensure trust and fairness.
While AI is certain to revolutionize the GCC banking sector, experts emphasize that human skills—particularly in emotional intelligence and creativity—remain irreplaceable. Hybrid roles blending both technical expertise and interpersonal skills are emerging, presenting new opportunities for workers ready to embrace the changes. As the region continues to innovate and evolve, the banking sector’s transformation promises to balance short-term disruption with long-term growth and prosperity.