AI in Banking: Risk Assessment, Opportunities in Emirates NBD Dubai

This dissertation provides a comprehensive risk assessment and explores the future opportunities and benefits of implementing Artificial Intelligence (AI) within the Retail Credit Center and disbursal units of Emirates NBD, a leading UAE-based bank in Dubai. It delves into the background of AI's emergence in the banking sector, highlighting both its potential cost savings and challenges, including the need for continuous monitoring and the risks of system failures. The study aims to analyze the degree of risks associated with AI in retail credit, measure the influence of automation on banking services, and evaluate strategic decisions for competing with Fintech organizations. Through research objectives focused on understanding risks, assessing the impact of automation, and exploring competition with Fintech, the dissertation offers valuable insights into the strategic implications of AI in the banking industry. The findings and recommendations provide a roadmap for banks looking to leverage AI while mitigating potential risks. Desklib provides access to this document and many other solved assignments.

Running head: DISSERTATION ON INFORMATION TECHNOLOGY
Dissertation on Information Technology
Name of the Student
Name of the University
Author Note

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Table of Content
CHAPTER 1: INTRODUCTION..............................................................................................5
1.1 Introduction......................................................................................................................5
1.2 Background to the study...................................................................................................6
1.3 Problem Statement...........................................................................................................8
1.4 Research Aim and Objectives..........................................................................................9
1.5 Research Questions..........................................................................................................9
1.6 Research Significance....................................................................................................10
1.7 Research Outline............................................................................................................11
1.8 Summary........................................................................................................................12
CHAPTER 2: LITERATURE REVIEW.................................................................................13
2.1 Introduction....................................................................................................................13
2.1 Artificial Intelligence: Opportunities and Challenges in finance industry.....................13
2.2 Banking institutions in UAE making a big leap in technology advances......................15
2.3 Reproducibility Crisis in Artificial Intelligence.............................................................16
2.4 A depth impact on banking sector employment awaits.................................................17
2.5 Embedding technology thinking into financial services................................................18
2.6 Fintech Partnership.........................................................................................................20
2.7 Need for an agile approach............................................................................................21
2.8 Trends that Artificial Intelligence is helping the financial institutions..........................22
2.9 Ways how Artificial Intelligence transformed finance industry....................................24
2.10 Risks associated with AI..............................................................................................26

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2.11 Gaps in the review........................................................................................................28
..................................................................................................................................................29
CHAPTER 3: RESEARCH METHODOLOGY.....................................................................30
3.1 Introduction....................................................................................................................30
3.2 Research Onion..............................................................................................................30
3.3 Research Philosophy......................................................................................................30
3.4 Research Approach........................................................................................................31
3.5 Research Design.............................................................................................................32
3.6 Data collection methods.................................................................................................33
3.7 Sampling method...........................................................................................................34
3.8 Ethical Consideration.....................................................................................................36
CHAPTER 4: FINDINGS AND ANALYSIS.........................................................................37
Chapter 5: Conclusion and Recommendation..........................................................................58
5.1 Conclusion......................................................................................................................58
5.2 Recommendation............................................................................................................60
References................................................................................................................................64

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List of Table
Table 1: Artificial Intelligence has positive impact on banking organizations in UAE..........37
Table 2: AI technologies for performing financial activities...................................................38
Table 3: Effectiveness of AI in financial institutions...............................................................40
Table 4: Fintech is a proper solution for contemporary financial methods.............................42
Table 5: AI is affecting financial institutions in UAE.............................................................43
Table 6: AI in banking operation is affecting the human skills in the banking sector.............45
Table 7: Agile approach is required for facilitating financial operation..................................46
Table 8: Activities AI for financial operation in Emirates NBD bank....................................48
Table 9: Use of AI technologies is a risk consumers with respect to privacy.........................50
Table 10: Risks that are presently alarming for Emirates NBD Bank.....................................51
Table 11: Significant opportunity that AI brings about...........................................................53
Table 12: Customer service can be enhanced by the use of AI in the banking sector.............55
Table 13: Common advantages of using AI in banking sector................................................57
Graph 1: Artificial Intelligence has positive impact on banking organizations in UAE.........37
Graph 2: AI technologies for performing financial activities..................................................39
Graph 3: Effectiveness of AI in financial institutions..............................................................40
Graph 4: Fintech is a proper solution for contemporary financial methods............................42
Graph 5: AI is affecting financial institutions in UAE............................................................43
Graph 6: AI in banking operation is affecting the human skills in the banking sector............45
Graph 7: Agile approach is required for facilitating financial operation.................................47
Graph 8: Activities AI for financial operation in Emirates NBD bank....................................48
Graph 10: Use of AI technologies is a risk consumers with respect to privacy.......................50
Graph 10: Risks that are presently alarming for Emirates NBD Bank....................................51
Graph 11: Significant opportunity that AI brings about..........................................................53

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Graph 12: Customer service can be enhanced by the use of AI in the banking sector............55
Graph 13: Common advantages of using AI in banking sector...............................................57

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Project Title: “Risk Assessment, Future Opportunities and Benefits of Implementing
Artificial Intelligence within Retail Credit Center and Disbursal Units – An Impact Study at a
leading UAE Based Bank, Dubai”
CHAPTER 1: INTRODUCTION
1.1 Introduction
This research project is a detailed risk assessment, future opportunities and benefits of
implementing Artificial Intelligence within Retail Credit centre and disbursal units. In order
to perform the study with the real-world data, leading based banks of Dubai have been
considered in the analysis. In a general view, artificial intelligence is more of a computer
science which aims to create intelligent machines and it has been a necessary and crucial part
of technology sector. Artificial Intelligence is rather a stimulation of human intelligence
process by machines particularly the computer system and these processes could include
learning, reasoning and self-correction. Particular application applications of AI could
include expert system, speech recognition and machine vision. It is fundamentally composed
of man-made efforts supported by coding, structuring and implementing it within an IT
system. Hence, the fundamental part of AI is more of designing and processing of
knowledge.
Even though there is a constant growth in the field of AI, bunch of questions appear
doubting the growth of AI in the field of businesses. One of the questions is whether the
banks and credit unions still be consumers’ fundamental financial institutions. It is worth
telling that shifting consumer attitude is one the significant changes that banking industry
must have to acknowledge and deal with to remain relevant. It has been identified that for
financial institutions, the upward growth of AI represents $1 trillion in projected cost saving

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and it is in general predicted that by 2030 conventional financial institutions could shave 22%
in cost. When it comes to the use of AI in the banking sector, some significant applications of
AI should not go unnoticed. It is worth mentioning that AI-enabled devices are already using
both sound and vision to collect information more appropriately compared to humans and
software continues to get more human-like.
So, on the basis of the above facts, it is worth telling that growth of AI is inevitable.
However, it is necessary to know how AI is actually impacting Retail units. In addition to
this, it should also be noted that as the market has been dynamic in nature, threats and
opportunities of using AI are two significant possibilities. Thus, the purpose of the research
project is to analyse and assess opportunities and benefits of implementing AI in retail credit
units and alongside analyse the threats and risks associated with the growth of AI in the
financial sector. The study is based on the leading UAE based banks of Dubai. This chapter
of the dissertation provides a detailed background about the emergence and growth of AI in
the banking sector of Dubai and the possible challenges that banking organizations might
face simultaneously with the journey of AI in businesses have been presented. This
introductory chapter of the dissertation also provides clear aims and objectives on the basis of
which review of literature has been established in the following chapter.
1.2 Background to the study
It has been identified that the concept of non-living object coming to life as intelligent being
has been around for very long time. Ancient Greeks had several myths regarding Robots,
Chinese and Egyptian engineers developed automations. Dirican (2015) mentioned that the
beginning of modern AI is often traced in classical philosopher’s endeavour to explain human
thinking as the comprehensible symbolic system. In a chance event, the idea of AI came out
from the scientist Marvin Minsky in a conference. According to Moro, Cortez and Rita
(2015), in the conference, it was concluded that the issue of developing ‘Artificial

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Intelligence’ can be resolved. However, achieving an artificially intelligent being did not
seem to be simple; even though a series of reports criticizing the growth of AI, financial
support from the government and interest in the field of AI dropped off. Nevertheless, the
field was further fuelled in 1980 when British Government started to fund it again to compete
with the efforts by Japanese. In this context, Nazari and Alidadi (2013) commented that even
though the field further observed a series of ups and downs, in 1997 IBM developed its Deep
Blue which became of the first computer to win over a chess champion Garry Kasparov. It
has been identified that cash management as well as forecasting in the financial industry has
been more challenging because of the growing business complexities. Moreover, the
complexity is more likely to get worse in coming two years as banking organizations are
facing a tough technology revolution. This means technology is adopted but its use is more of
a great challenge. It has been identified that financial technology has arrived which meets the
fast pace of business, as those in finance tend to consume instant analytical technologies in
their personal lives and there are some tools available which could automate and deliver on a
timely manner (Sharma, Sharma and Barua 2013).
When it comes to real time applications of AI It has been identified that Artificial
Intelligence provides favourable changes in the business process and system by making it
faster and enhancing quality. AI is so different in providing a set of repetitive tasks like
social media sharing of blog posts on some particular time, scheduled post for publishing
match wanted solution by the means of AI (Zeinalizadeh, Shojaie and Shariatmadari 2015).
In production, cleaning, infrastructure development, design, transportation and several
engineering works and communication. Likewise, several other emerging benefits that AI
provides to its consumers.
Nonetheless, the accomplishment has been controversial but despite the series of
controversies, rapid pace of work in the field of AI have encouraged scientists and businesses

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to increase the level of expectation out of the field. As the large businesses and marketers are
showing their interest in AI, the interest of banking sector should not go unnoticed because as
the banking being one of the largest sectors to make investment in AI, consumers have
already starting encountering its work in their regular transaction. According to, Sharma,
Sharma and Barua (2013) global spending across industries on artificial intelligence is
estimated to reach about $20 billion in the last year and it could triple over next three years.
It has been particularly found that UAE is also interested in the new technology with AI
strategy targeting a contribution of AI of Dh350 billion. It has also been identified that for
consumers, technology is developing rapidly with the bank. It is found that banks use AI to
automate techniques, interact with consumers, and develop intelligent as well as real-time
lending models and improve fraud-related monitoring among other activities. In this context,
Zeinalizadeh, Shojaie and Shariatmadari (2015) mentioned that rule-based ‘bots’ help
banking organizations to perform repetitive tasks at the back end like shifting through a wide
set of documents to fetch data instantly or automate smoother processes. Chatbots are usually
text or voice based assistants which are helping the consumers to engage with the banking
organizations.
1.3 Problem Statement
It has been identified that even though the effect of AI is taking its toll on the
financial institution in UAE nations, adequate knowledge about the use of AI and cost has
always been a significant concern to the financial institutions of UAE. Another significant
concern is that implementation of AI needs a periodic basis check-up and the cost of such
practice might not always result in desired way because sometimes, cost could be huge.
Moreover, critical failure and bugs in the system are two most possible hazards which could
certainly the delay the operation in AI.

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As put forward by Acemoglu and Restrepo (2018), AI is an evolving technology as its end
goals are shifting because some of its capabilities become mainstream, prompting the
industry to pursuit yet another shiny and more advanced and intelligent system. In addition, it
has also been identified that not all AI dots can be linked and connected today and every user
in the field is learning –such as the Banks are learning, technology vendors are learning,
implementation partners are learning. Thus, it is difficult for all such parties to put their head
together in AI.
1.4 Research Aim and Objectives
The major aim of the study is to analyse the degree of risks in using AI within the retail credit
centre. Study secondarily aims to measure the influence of automation process which relies
on different services delivered by banks in Dubai. Studies also focus on the strategic
decisions which are implemented to deal with the emerging rival organizations appeared as
Fintech Counterparts. Following are the key objectives to meet the stated aim
 To understand the risks that might arise due to the implementation of automation
 To understand the impact that the automation process would be having upon the
different services and the ways of competing with the new Fintech who have entered
the market
1.5 Research Questions
 What are the risks associated with the implementation of the artificial intelligence?
 How can the AI implementation help the bank in remaining strategically enhanced?
 How can the AI implementation impact the process and the customer services of
Emirates NBD bank?

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1.6 Research Significance
There is no doubt that AI plays a great role in banking sector because the financial
transactions are facilitated due to use of AI. It has been identified that the use of AI helps in
tracking, monitoring as well as performing tasks at convenience of time. It has been identified
that due to the use and progress of AI, occurrence of fraud activities has been decreased over
time as well as smart actions about the banking practices are exercised within a fraction of
time. Moreover, the use and application of AI in banking sector is quite interlinked and
aligned within the idea of innovation in the banking sector. It is noted that other use of AI in
banking industry involves the fraud detection, enhanced consumer personalization, enhanced
governance and physical robots.
According to Vives (2017), continued advances in technology as well as changing
consumer profiles started driving the growth of digitalization as well as AI in banking.
Alongside, consumer acceptance of AI based solution is climbing steadily which is again
supported by data-related regulations coming into force stating the concern specifically on
privacy and security. Nonetheless, it is highly significant to learn how AI is actually
addressing the concern regarding privacy and security. It is important to learn and verify the
fact that future of banking sector is not simply a matter of selecting a robot over a human
being. This study helps to learn how in the field of AI, a large set of tools of digital
technology provides excellent banking experience to consumers. Implementation of the study
is particularly benefit the banking organizations with respect to the use of AI. Effectiveness
of usage of such platform with respect to the usage of such platform in UAE regions has been
evaluated to understand. Such evaluation is going to benefit organizations in the banking
sector as besides a series of benefits, organizations are going to know how they would deal
with the possible risks associated with the use of AI in banking sector. Moreover, each of the

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alternatives found in the AI are evaluated in the study which could benefit banking
organizations in UAE.
1.7 Research Outline
Introduction: This is an introductory chapter of the dissertation and it fundamentally
discusses the topic such as the emergence of AI in the banking sector of UAE and challenges
associated with the use of Artificial Intelligence. Chapter also provides clear aim and
objectives based on which a detailed review has been performed in the following chapter.
Figure 1: Organization of the study
(Source: Self-made)
Literature Review: This chapter provides an insight about AI and its contemporary
use in the banking sector. The review has been performed by considering more than thirty
five journal articles that are performed on AI and its application. On the basis of the review,
appropriate gaps in the paper have been found and the gaps are further addressed in the study.
Chapter 1: Introduction
Chapter 2: Literature Review
Chaper 3: Research Methodology
Chapter 4: Findings and Analysis
Chapter 5: Conclusion and Recommendation